Denbury commences carbon dioxide flood at Hastings

By OGJ editors
HOUSTON, Jan. 4
-- Denbury Resources Inc. in December completed the last section of the 24-in., 320-mile Green Pipeline for transporting carbon dioxide from Donaldsonville, La., to oil fields in Texas and on Dec. 16 started injecting CO2 for enhancing oil production from Hastings oil field in Brazoria County.

The Green line has a designed capacity to transport 800 MMcfd of CO2 and at Donaldsonville the pipeline receives CO2 from Denbury's NEJD CO2 pipeline that also transports CO2 from the company's Jackson Dome, Miss., CO2 source field to its enhanced oil recovery projects in Mississippi and Louisiana. The company also expects to eventually tie in anthropogenic CO2 sources to the Green line.

In addition, Denbury recently received a US Army Corps of Engineers permit for facility construction at Hastings and anticipates receiving a permit for facility construction at Oyster Bayou oil field, Chambers County, Tex., in January 2011.

Denbury started CO2 injection in Oyster Bayou in June 2010.

Denbury in a December presentation estimated that Hastings contains 70-100 million bbl and Oyster Bayou contains 20-30 million bbl of recoverable tertiary oil.



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