Evaluating miscible flood projects for acquisition or viability

Very little information exists regarding evaluating enhanced oil recovery (EOR) projects, in particular miscible floods. Due to the size and scope of most tertiary recovery projects, standard evaluation rules and techniques are too general and vague to adequately model these schemes. A procedure for identifying the risks associated with miscible EOR projects is presented. It is essential to set up a cash flow model that accurately represents the future performance of a miscible flood. Included in the model are the timing of crucial events such as expected solvent breakthrough and the injection of trace gas. The cash flow analysis allows a quick audit procedure and converts production into a monetary or economic evaluation criteria that can easily be compared to other investment alternatives. When evaluating a miscible flood project, forecasting production, solvent and chase gas recovery costs can become quite complex. An organized procedure for an evaluation will ensure that a comprehensive and thorough examination of all the data is completed, and will increase confidence levels associated with decision making. 32 refs., 4 figs., 4 tabs