future growth potential, page-17

Last month I attended an EOR conference in Wyoming at which ELK presented.

What I found most interesting is the potential for EOR extending way beyond tertiary recovery in the Main Pay Zone (MPZ). Current developments in EOR are targeting oil below the oil water contact and above the water table. This Residual Oil Zone (ROZ) has similar characteristics to the water flooded MPZ and contain as much or more oil than the OOIP in the MPZ.

The will also be zones whch were drilled that had no oil and were left. Explorers will return to these ROZ's also.

The DOE has estimated possibly 190 billion barels of ROZ's suitable to CO2 EOR. This number is significantly higher than all of the OOIP in MPZ's in the USA.

The potential for Elk may extend well beyond just tertiary rocovery in the current MPZ.