Magellan Petroleum Begins Pilot CO2 Injection at Poplar
March 26 2014 - 6:00AM
Marketwired
Magellan Petroleum Begins Pilot CO2 Injection at Poplar
DENVER, CO--(Marketwired -
March 26, 2014) - Magellan Petroleum Corporation ("Magellan"
or the "Company") (NASDAQ: MPET)
announced today that on March 25, 2014, the Company began injecting
CO2 into the Charles formation at Poplar Dome through the EPU
202-IW well, marking the beginning of the injection phase of the
Company's CO2-enhanced oil recovery ("CO2-EOR") pilot
program. As previously announced by the Company, the CO2
volumes necessary to conduct the pilot will be supplied by Air
Liquide Industrial U.S. LP. Air Liquide is the world leader in
gases for industry, health and the environment.
The pilot program consists of five wells, including the
CO2-injection well mentioned above and four producer
wells. While Magellan expects to see a small increase in
production from the four producer wells in the pilot, the real
purpose of the pilot is to validate the viability of this tertiary
recovery technique on a full-field basis, reduce the operational
risk of implementing such a full-field program, and quantify with
greater certainty the incremental recoverable reserves at Poplar
from CO2-EOR. The Company expects to inject CO2 over a two
year period and to be in a position to publicly communicate
preliminary results of the pilot during the fourth quarter of
calendar year 2014 and to assess and publicly announce the
potential viability of this project in the first quarter of
calendar year 2015. Although the Company has not booked
reserves related to CO2-EOR at this time, Magellan estimates the
resource potential to be approximately 50 MMboe.
J. Thomas Wilson, President and CEO of Magellan, stated: "We
have worked very hard to get to first CO2 injection, and we are
excited that the pilot is now underway. We look forward to the
next nine to 12 months, when we will be focused on monitoring the
performance of our pilot wells and analyzing any production
response to the CO2 injection. I look forward to updating our
shareholders at the end of that period with preliminary results
about CO2-EOR at Poplar."
CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING
STATEMENTSStatements in this press release, including forecasts or
projections that are not historical in nature, are intended to be,
and are hereby identified as, forward-looking statements for
purposes of the Private Securities Litigation Reform Act of
1995. The words "anticipate", "assume", "believe",
"budget", "estimate", "expect", "forecast", "intend", "initial",
"plan", "project", and similar expressions are intended to identify
forward looking statements. These statements about the Company may
relate to its businesses and prospects, planned capital projects
and expenditures (including those relating to the Poplar CO2-EOR
project), increases or decreases in oil and gas production and
reserves, estimates regarding resource potential, revenues,
expenses and operating cash flows, and other matters that involve a
number of uncertainties that may cause actual results to differ
materially from expectations. Among these risks and uncertainties
are the following: the technical and economic viability of CO2-EOR
techniques at Poplar; our ability to enter into a long term CO2
supply for our Poplar CO2-EOR project; the uncertain nature of oil
and gas prices in the United States; uncertainties inherent in
projecting future rates of production from drilling activities; the
uncertainty of drilling and completion conditions and results; the
availability and cost of drilling, completion, and operating
equipment and services; and other matters discussed in the "Risk
Factors" section of The Company's most recent Annual Report on Form
10K and most recent Quarterly Report on Form 10Q. Any
forward-looking information provided in this release should be
considered with these factors in mind. The Company assumes no
obligation to update any forward-looking statements contained in
this report, whether as a result of new information, future events,
or otherwise.
Estimates of non‐proved resources are subject to significantly
greater risk of not being produced than proved reserves.
ABOUT MAGELLAN Magellan Petroleum Corporation is an independent
oil and gas exploration and development company with assets in the
US, Australia, and the UK. The Company is primarily focused on
the development of a CO2-enhanced oil recovery ("CO2-EOR") program
at Poplar Dome in eastern Montana. Historically active in
Australia, Magellan operates two gas fields onshore Northern
Territory and an exploration block in the Bonaparte Basin, offshore
Northern Territory. Magellan also maintains a large acreage
position onshore the UK prospective for unconventional shale oil
and gas production. Magellan is headquartered in Denver,
Colorado. The Company's mission is to enhance shareholder
value by maximizing the full potential of existing
assets. Magellan routinely posts important information about
the Company on its website at www.magellanpetroleum.com.
Magellan Petroleum Corporation Matthew CiardielloManager,
Investor Relations720.484.2404IR@magellanpetroleum.com
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