The proposed pipeline will run 350 miles from the company’s St Johns Helium/carbon dioxide field located on the borders of Arizona and New Mexico, to the Permian Basin of New Mexico and West Texas. The proposed pipeline will initially transport 350 million cubic feet per day (mmcfpd) of carbon dioxide for injection into depleted oil fields located within the Permian Basin.
Under the memorandum of understanding (MoU), SunCoast will have the rights to develop, own, operate and manage the pipeline project. Enhanced Oil Resources (EOR) has reserved the rights to the first 175mmcfpd of capacity in the pipeline to inject into its own oilfields in the basin and for other targeted oilfields.
Barry Lasker, president and CEO of EOR, said: The execution of the pipeline MoU with SunCoast represents the achievement of another benchmark for our company. We continue to execute our plan to actualize production from St Johns by late 2010, and we look forward to working with John Baker and the SunCoast team.
