American Oil and Gas Reporter - June 2015 - 53

and technical development for Kinder
Morgan CO2.
In light of today's price environment,
Schoeling says the company has no plans
to change its EOR capital budget, and continues to focus on lowering operating expenses. With a similar capital expenditure
program as in 2014, Kinder Morgan has
plenty of options in the Permian, he insists,
especially in its 56,000-acre SACROC
CO2 flood in Scurry County, Tx., where
the company holds a 97 percent working
interest.
"Existing CO2 floods can be economic at oil prices to as low as $30 a barrel,"
Schoeling reveals.
He says Kinder Morgan hopes to boost
its average daily SACROC production of
35,000 barrels of oil and 20,000 barrels of
liquids by targeting the previously bypassed Middle Canyon pay. Although it is
part of the productive Canyon Reef formation, the tight Middle Canyon historically was bypassed and only the more established Cisco and Green Zone reef pays
were flooded, he explains.
But armed with advancements in
drilling and completion technologies,
Kinder Morgan is targeting the untapped
Middle Canyon oil by drilling 6,000-foot
laterals fractured in 20 stages, Schoeling

Manzano LLC is producing 75,000 barrels of oil and 700 million cubic feet of natural
gas a month from its Permian Basin operations. As of early May, the company had 15
wells producing in its San Andres program, and was keeping one rig running, completing two wells a month.

says. The wells are converted to injectors
and have boosted production from wells
in patterns by an average 500 bbl/d, although several have raised IPs from a pattern by twice that much, he says, adding
that seismic imaging has assisted in
identifying very productive infill candi-

dates.
"Those kinds of projects do not need
$100 oil," he reasons. "We are seeing
1,000 barrel-a-day increases from adding
a Middle Canyon well to a pattern, and that
is why we are seeing the great production
at SACROC."

JUNE 2015 53



American Oil and Gas Reporter - June 2015

Table of Contents for the Digital Edition of American Oil and Gas Reporter - June 2015

Contents
American Oil and Gas Reporter - June 2015 - Cover1
American Oil and Gas Reporter - June 2015 - Cover2
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American Oil and Gas Reporter - June 2015 - Contents
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