I feel sure that we have yet to see the EOR response at Grieve.
Other Wyoming oil fields transitioning from waterflood to CO2 flood have taken anything from 3-6 months before any significant improvement in production rate was seen. Grieve after the re-pressuring stage, is effectively at the start of that transition and unlike those other fields, has not been produced for several years while it reached that "transition" point.
If Denbury's modelling was not forecasting a favourable EOR outcome, I seriously doubt that they would continue with the project which involves serious on-going costs in terms of injected CO2. The same is true of the capital that has been invested in wells and facilities. Just a shame they have not released the results of their Grieve modelling.
ELK Price at posting:
7.5¢ Sentiment: Hold Disclosure: Held
