Glori Energy Inc. (GLRI), an energy technology and oil production company focused on enhanced oil recovery using its proprietary biological AERO™ System, today announced it has acquired an 84% working interest in a producing oil property in Refugio County, Texas. Glori acquired the Bonnie View field in South Texas due to its substantial residual oil in place and because it is well-suited for the deployment of its AERO technology. Of the field's estimated 50 million barrels of original oil in place (OOIP), 19 million barrels of oil (MMBO) has been recovered to date. Glori estimates it has the ability to recover an additional 6 MMBO through the deployment of its AERO System. The Bonnie View field, which is currently producing approximately 70 net barrels of oil per day, was purchased for approximately $2.6 million.
Tom Holland, Senior Vice President, Acquisitions & Production for Glori Energy, said, "This acquisition advances our ongoing strategy to acquire producing oil properties that have a significant amount of oil remaining in place and advantageous characteristics for the AERO System to recover that residual oil. While typically only one-third of oil discovered in a reservoir is recoverable using conventional technologies, Glori's innovative AERO technology can potentially recover an additional 20% of the remaining oil at a cost of less than $10 per incremental barrel produced."
Glori expects to deploy the AERO System in the Bonnie View field this winter and anticipates that field production should grow steadily throughout 2016. Simultaneously, while undertaking the necessary preparations for AERO deployment, Glori will implement conventional field optimization operations that could also materially increase current production.
"In this market, we are focused on acquiring additional oil fields that can benefit from the AERO System. As we work on a number of opportunities of varying scale, we look for waterflood or waterdrive sandstone fields that have a combination of current production and significant oil left behind," Holland added.