An Australian energy producer has acquired 14 oil fields in Texas and Louisiana from Houston-based ERG Resources for $236 million. Linc Energy Ltd., based in Brisbane, says it plans to double production from 3,300 barrels per day to 6,300 barrels per day over the next 12 months using additional drilling. Linc says the fields have proven reserves of 20 million barrels with a 40% recovery factor. The company said that indicates a significant potential to use carbon dioxide to bring about additional production.
The enhancement technique involves feeding a stream of carbon dioxide into rock containing oil, pushing it toward a wellhead to be pumped up to the ground. The industry is counting on the technique in fields that in the past would not have had sustainable production, although oil remained. Twelve of the fields purchased by Linc are located along the Texas Gulf Coast and Texas inland water areas. The major field in Louisiana is the Black Bayou field in Cameron Parish, where the company plans an aggressive drilling project.
