Tag Archives: EOR

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SISM Research, Second Coring Operation Targeting The Bottom Of The Elkton/Debolt Formation Was A Suc

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By Business Wirevia The Motley Fool

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SISM Research, Second Coring Operation Targeting The Bottom Of The Elkton/Debolt Formation Was A Success – Well Logs Indicated An Oilsands Pay Zone Of 20 Meters And Primary Production – A Game Changer

NEW YORK–(BUSINESS WIRE)– Ernst C. Schlotter, a senior analyst with Zurich, Switzerland-based SISM Research and a four star analyst according to Reuter’s StarMine, released his valuation updates on Octagon 88 Resource, Inc. (OCTX). After reviewing both of the preliminary results of the two wells cored, SISM summarizes the NAV of Octagon 88’s projects to $23.11 a share.


Development Update

As the Company’s geologist/geophysicists expected, preliminary results from the Erosional Edge Elkton/Debolt coring program showed a pay zone of 20 meters and a porosity of 30 percent instead of 18 percent which has been estimated and reported a few days ago. This means there is more oil in the targeted pay zone formation. In addition the cores showed a fluoresced orange throughout the complete pay zone indicating a lighter heavy oil to produce with primary production methods. An approximately API of 9° is needed that the oil can flow with the chance of primary production without stimulation or EOR (enhanced oil recovery) making economics very favorable and bases on porosity, there is enough oil to pump to the surface. The porosity consists of the tiny spaces in the rock that holds the oil or gas. Porosity of a rock is a measure of its ability to hold a fluid. Porosity is the open space in a rock divided by the total rock volume (solid + space or holes). Porosity is expressed as a percentage of the total rock which is taken up by pore space. Octagon cores samples showed a porosity of 30 percent. This means 70 percent is solid rock and 30 percent is open space containing oil, gas, or water. Octagon 88 Resources has recently announced that the coring program targeting the Elkton Debolt Erosional Edge Formation was successfully completed. The cores have been taken to AGAT laboratories for analysis. Within two weeks, Octagon 88 Resources, Inc. and CEC North Star Energy as the operator drilled two core wells, targeting the Bluesky/Gething sandstone formation and the carbonate Elkton/Debolt – Erosional Edge Formation on the project land.

-SISM Update Report – April 02, 2013
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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Octagon 88 Resources Announces Preliminary Results From the Elkton Erosional Edge Cores Now Under An

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By Business Wirevia The Motley Fool

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Octagon 88 Resources Announces Preliminary Results From the Elkton Erosional Edge Cores Now Under Analysis In Labs

CALGARY, Alberta–(BUSINESS WIRE)– Octagon 88 ResourcesInc. (OCTX) is pleased to provide the following first analysis of the cores successfully taken from Elkton Erosional edge well. The porosity throughout the full 20 meters of pay zone has shown to be 30 percent rather than the earlier announced 18 percent. This dynamically increases the amount oil contained in the sands. Additionally the cores are fluoresced orange throughout the complete pay zone indicating again to be lighter heavy oil to produce with primary production methods.

These cores are being tested in AGAT laboratories to confirm the properties of this dolomitic highly oil saturated limestone deposited in a carbonate environment. From the extensive well control information (including positive reviewed cores studied in the area) the geological study was able to establish the sweet spot. The well site finding has established 20meters of oilsands pay zone with the well logs now indicating porosity values up to 30%, whereas the industry minimum porosity required for production is 8%. The consistency of the sands through the pay zone were 100 percent complete with no water present which when confirmed at AGAT labs, the company would have a second primary production project in parallel to the prior announced successful Blue Sky Gething project. The first 2 projects combined will target scaled development possibilities of 50,000 barrels a day of conventional heavy oil production beginning this year.


Conventional Heavy Oil Production

The project has the opportunity for primary production without stimulation or EOR (enhanced oil recovery), as the oil in the erosional edge is expected to be of a lighter API (density) than the main thicker Elkton & Debolt zones.

The first well in the Elkton project targeted the sweet spot that was established through geological studies. Based on other similar industry experience in the Grosmont area the company is projecting through several stages to ultimately bring on multiple 5,000 to 10,000 barrel a day scalable projects. Production from the Erosional Edge projects recently came to the forefront with the success of Laricina and Osum announcing commercial operations; a joint venture on the erosional edge of the Grosmount Carbonates using new technologies. Also Shell, Husky, Laracina, Osum, Athabasca Oil and Sunshine Oil are all currently advancing their Carbonate projects.

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Source: FULL ARTICLE at DailyFinance

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Octagon 88 Resources And CEC North Star Announce The Elkton & Debolt Well Has Been Successfully Spud

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By Business Wirevia The Motley Fool

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Octagon 88 Resources And CEC North Star Announce The Elkton & Debolt Well Has Been Successfully Spudded

CALGARY, Alberta–(BUSINESS WIRE)– Octagon 88 Resources Inc (OCTX) and CEC North Star Energy Ltd are pleased to announce the coring rig has reached location and spudded the second licensed well targeting the Elkton/Debolt – Erosional Edge. The well reached a total depth of 480 meters and coring operations will begin immediately.

The company intends on having these cores tested in AGAT laboratories to confirm the properties of this dolomitic highly oil saturated limestone deposited in a carbonate environment. From the extensive well control information (including positive reviewed cores studies in the area) the geological study established thickness ranging from 6 to 20 meters with porosity values up to 28%, whereas the industry minimum porosity required for production is 8%.


The Erosional Edge

The project has the opportunity for primary production without stimulation or EOR (enhanced oil recovery), as the oil in the erosional edge is expected to be of a lighter API (density) than the main thicker Elkton & Debolt zones. The well is being drilled to bring on the second project in parallel with the Bluesky/Gething project, the first well successful in its coring operations awaiting AGAT laboratory results.

The first well in the Elkton & Debolt project targets the sweet spot that was established through geological studies. Based on other similar industry experience in the Grosmont area the company is projecting through several stages to ultimately bring on multiple 5,000 to 10,000 barrel a day scalable projects. Production from the Erosional Edge projects recently came to the forefront with the success of Laricina and Osum announcing commercial operations; a joint venture on the erosional edge of the Grosmount Carbonates using new technologies. As Shell, Husky, Laracina, Osum, Athabasca Oil and Sunshine Oil are all currently advancing their Carbonate projects.


Octagon 88 Resources

In 2012 / 2013 Octagon 88 Resources, Inc. acquired substantial light and conventional heavy oil assets in Northern Alberta. The acquired projects have been substantially de-risked which leads the company to emerge as a development stage …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Inside Kinder Morgan: CO2

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By Aimee Duffy, The Motley Fool

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Based on combined enterprise value, Kinder Morgan is the third-largest energy company in North America. We tend to associate the giant with its 75,000 miles of pipelines, but in reality its operations are incredibly diverse. Over the past week, I’ve taken a closer look at each of the midstream company’s five distinct business units: So far I’ve reviewed terminals, natural gas pipelines, products pipelines, and Kinder Morgan Canada. Today we dig into the last business segment, one of the least understood parts of the partnership’s operations: CO2.

Background on the assets
Kinder Morgan is at the top of the heap when it comes to the CO2 business, serving as North America‘s leading transporter and marketer of the gas. The company delivers about 1.3 billion cubic feet per day through its 1,300 miles of CO2 pipe. Before we get into the nitty-gritty of Kinder Morgan‘s assets (which are technically owned by Kinder Morgan Energy Partners ), let’s remind ourselves of what the CO2 business actually is.

Most often, when it comes to energy production, carbon dioxide is the enemy. However, in the mature oil fields of West Texas, carbon dioxide is an oil man’s best friend. The gas is injected into a well at high pressure, in a process called flooding, to force out every last bit of oil. Companies such as Occidental Petroleum in the Permian Basin and Denbury Resources on the Gulf Coast have used enhanced oil recovery, or EOR, to maximize output. The process is often called tertiary recovery, because it’s the third step after normal production, followed by water flooding.

Kinder Morgan engages in the transportation of CO2, selling it to customers in the Permian, but it also uses it to produce oil. The partnership has four CO2 source fields in Arizona, New Mexico and Colorado, and three oil-producing fields in Texas. Its assets also include the requisite CO2 and oil pipelines.

In 2012, oil production at Kinder Morgan‘s SACROC field beat management’s expectations by more than 1,000 barrels per day, and it was the same story with NGL production. However, as many midstream industry fans know, the NGL price collapse last year really hurt, and Kinder Morgan was no exception, suffering a $59 million impact on distributable cash flow.

Let’s look at how the segment’s assets performed in 2012 compared with management’s expectations. Note that the CO2 producing fields and pipelines are grouped together as “Source & Transportation,” or S&T:

Asset

Expected

Actual

Difference

SACROC (oil)

27,868 Bbl/D

28,968 Bbl/D

3.8%

SACROC (NGL)

17,361 Bbl/D

18,825 Bbl/D

7.8%

Yates

20,986 Bbl/D

20,839 Bbl/D

(0.7%)

Katz

2,267 Bbl/D

1,722 Bbl/D

(24%)

CO2 S&T

1,264 Mmcf/D

1,212 Mmcf/D

(4.1%)

Source: Company presentation. 

A combination of high oil prices and higher production at SACROC allowed Kinder Morgan to partially mitigate lower production at Katz …read more
Source: FULL ARTICLE at DailyFinance