At Grieve, the company hopes to increase output from 50 barrels of oil per day (bopd)and 65 million cubic feet of gas per day once it has completed a full technical review of the structural geology of the field at the end of the December quarter.
An earlier attempt to increase flows from the main producing reservoir, the Muddy Formation, failed when the company injected produced water into an existing well at the south end of the field to try and sweep oil to the northern end where the producing wells are located.
“It is apparent from anomalous reservoir pressure data that the Muddy Formation is compartmentalized and as a result, the original model to affect an increase in production is ineffective,” Elk chief executive Richard Wood said.
Re-mapping of the field will involve acquiring all existing seismic data for modern reprocessing where possible. Based on these results, Elk will decide whether to acquire new seismic data. In addition, re-mapping is expected to indicate the best positions to test other productive horizons in the field.
“In conjunction with the re-mapping of the field, production increases are expected to be achieved by moving directly to the implementation of Stage 4 of the proposed redevelopment program, contained in the May 2005 prospectus,” Wood said.
“As part of the technical review of the Grieve Field, the company is examining the costs and feasibility of the various enhanced oil recovery options.”
Meanwhile at Sand Draw, Elk plans to move a rig later this month to workover four wells abandoned by a previous operator during a time of lower oil prices.
At each of the wells, Elk plans to reestablish a wellhead, drill out cement and bridge plugs, re-perforate and stimulate oil producing reservoirs, install tubing and electric submersible pumps and make a connection to existing production facilities.
Elk expects that production will reach about 90bopd from the reactivated wells once the workover is complete.
The workovers are expected to increase Sand Draw South oil output to about 160bopd, in addition to a significant increase in gas production.
