Magellan Petroleum Planning CO2 EOR Pilot Test At Poplar Dome

Magelan Petroleum Poplar CO2 EOR Project MT
Magelan Petroleum Poplar CO2 EOR Project MT

Magellan Petroleum is planning a five well CO2 pilot test at its Poplar Field in northern Montana. The price tag for the test is estimated at $20 milllion.

Evaluation of the project is expected to take any where from one to two years. From there, Magellan hopes to take the field into full development.

Five wells will be used during the test - one injection well and four producing wells.

Magellan hopes full scale development could yield as much as 50 million barrels of oil. The field is unitized and consists of 22,000 acres.

We believe that bringing this field to full-scale EOR development could result in the addition of 50 million barrels of reserves to our books and could have a significant multiplier effect on our valuation.
— Magellan's CEO

Denbury - Exxon Deal Includes Bakken Acreage, CO2, Tertiary Flood Fields, Cash

Denbury Bakken Acreage Map
Denbury Bakken Acreage Map

Denbury and Exxon have announced a deal that includes almost 200,000 acres in the Bakken trading hands. Exxon is paying and trading $1.6 billion dollars in cash, operating interests in the Webster Field in Texas, and interests in the Hartzog Draw Field in Wyoming for 196,000 acres in the North Dakota Bakken play.

Denbury is trading its Bakken assets that were largely acquired through the acquisition of Encore for cash and fields with CO2 tertiary flood potential. CO2 floods are the company's focus and a deal for the Bakken assets has been expected for some time. XTO Energy, an Exxon subsidiary, will operate the Bakken assets.

Denbury Acquiring CO2 from XOM

In a separate agreement, Denbury will either purchase CO2 from the LaBarge Field from XOM or will purchase an interest in reserves in the field. The $1.6 billion in cash from Exxon will be reduced by the amount of the CO2 agreement.

Tertiary Flood Opportunity Expands in WY & TX

The Hartzog Draw Field (370 mmbbls OOIP) is located near the Greencore Pipeline that runs from Conoco's Lost Cabin plant to the Bell Creek Field in Southern Montana. The company estimates the field has ultimate potential net recovery of 20-30 million barrels.

The Webster Field (550 mmbbls OOIP) is located just 8-miles from the company's Green Pipeline that delivers CO2 to the Hasting Field south of Houston. DNR estimates the Webster field has ultimate potential net recovery of 60-75 million barrels.