In a presentation to investors, the Perth-based company said it was targeting 600 barrels of oil per day at Sand Draw by the end of this year, compared with the current 340bopd rate.
The additional production is expected to result from working over more abandoned wells in April and May and drilling a new infill well, between July and August, into an untapped section of the reservoirs. Elk plans to next month finish a 3D seismic program over Sand Draw.
At Grieve, carbon dioxide will be injected under high pressure into existing wells to “scavenge” recovery and reduce viscosity of the 12.5 million barrels of remaining 2P reserves.
Elk said Grieve had an “ideal and simple” field configuration for CO2 enhanced oil recovery, an established technology used widely since the 1970s.
“Recovery is quick and dramatic in extent,” it said, adding that it was seeking a joint venture partner to provide funding and operational expertise for this activity.
The company also plans to revisit the Upper Sands, following last year’s failed attempt to test the deepest units due to mechanical problems in existing wells.
A location has been selected to drill a new exploration well in April and May to a total depth of 2000 feet (609.6m) into the shallowest units at a cost of $US300,000 ($A381,000).
“Testing of deeper Upper Sands will be the subject of a future program,” Elk said.
Elsewhere in Wyoming, Elk has recently acquired a 50% interest and operatorship of the Ash Creek project in the Powder River Basin region.
Describing it as similar to Grieve with “low cost and moderate potential”, Elk said the field was abandoned after producing 8.2 million barrels of oil from the Shannon Formation.
Based on logs from producing wells, Elk said potential exists in formations located above the Shannon.
The company plans to drill a shallow well in May, depending on third parties.
In addition, Elk said it was actively pursuing new exploration acreage in Wyoming, Montana and Nebraska.
“Other production opportunities are being reviewed as a further means of expanding Elk’s existing operations and enhancing its cashflow position,” it said.
