(MENAFN - ProactiveInvestors - Australia) Enhanced oil recovery play Elk Petroleum (ASX: ELK) is preparing to re-enter and complete another well at its Ash Creek project as a production well.
The workover rig is expected to be mobilised to Ash Creek on the border of Wyoming and Montana and be on location to re-enter the Baker-3 well early next week.
Baker-3 is high on structure and will test the reservoir modelling which suggests that mobile oil has migrated up structure during the fifteen years since the field was shut-in and abandoned.
Assuming this modelling is correct, oil flow from the well will lift production from the field and also provide justification to re-enter other wells high on structure to achieve early incremental oil.
This will then be followed by implementation of the first stage of the chemical flooding of Ash Creek early in 2013.
Additional production and testing will allow the simulations of the future Ash Creek chemical flooding operation to be upgraded and the enhanced oil recovery (EOR) development plans to be refined.
The production flowline from Baker-3 to the production facilities has been installed and will be tied into the well once it has been re-entered and completed in the coming weeks.
Elk added that construction of the modules that will make up the chemical injection facilities for the Ash Creek EOR project is underway by Nalco FabTech in Casper, Wyoming.
The chemical pumping system, mixing system, water feed, treatment and filtration system, dry storage, laboratory/office and power and control system will each be contained in six individual modules which will be internally connected in the field to allow ease of access.
These are designed for the first stage of the chemical flood and are being built with capacity to handle later stages of the Ash Creek EOR project. Future stages will be commissioned after production history is obtained from the Stage 1 pilot flooding program.
Elk will connect the facilities into the recently completed and expanded production facilities. Site works are underway to prepare for the delivery of the chemical injection modules.
The modules are now expected to be installed early in 2013 to coincide with the first delivery of the specially manufactured chemicals.