Elk Petroleum (ticker: ELK) is Australia’s only ASX-listed CO2 EOR oil and gas company, and is one of the largest oil producers in the country.
Elk is active in several EOR fields in the Rocky Mountains, with projects in Utah, Wyoming and Nebraska. The company was in the news in September, when Elk bought a 63% stake in the Aneth field from Resolute Energy (ticker: RES). Elk paid $160 million upfront, with additional considerations of up to $35 million if oil prices exceed certain levels in the next three years. This deal added 59 MMBO of oil reserves and 6.5 MBOPD of oil production to Elk’s holdings, making it one of the largest Australian companies by both metrics.
Source: Elk Petroleum Investor Presentation
Located in southeastern Utah, the Aneth field is a large conventional field, with 1.5 billion barrels of oil in place. The EIA reports it is the 86th biggest oil field in the U.S., and is one of the largest CO2 EOR projects in the Rockies. Aneth has been in continuous production sinct the 1950’s, and Elk expects to produce from it for many years into the future.
The current production of 6.5 MBOPD is relatively stable, and will decline much more slowly than the average unconventional property. Elk has identified five major growth projects at Aneth, expanding the EOR activities. These could add a combined 6 MBOPD, significantly increasing the field’s output.
Source: Elk Petroleum Investor Presentation
Source: Elk Petroleum Investor Presentation
Elk also holds Grieve, Madden fields
While Aneth is the largest field owned by Elk, the company also holds interests in several other fields. The company holds a 49% stake in the Grieve field in Wyoming, which is currently under development. Facilities are being constructed, and mechanical work was completed at year end 2017. Electrical and instrumentation work is currently in progress, and is scheduled to be complete by mid-February. The field is expected to produce a net 600 MBOE in 2018, and will be in operation for 20 years, the company estimates. Elk wholly owns the pipeline that transports oil from Grieve to the point of sale.
Elk also holds a stake in the Madden gas field in Wyoming. This is one of the largest conventional natural gas field in the U.S., and also has significant CO2 reserves. The field is operated by ConocoPhillips, and is expected to produce a net 1.2 MMBOE in 2018.
Source: Elk Petroleum Investor Presentation
EnerCom Dallas conference presenter
Elk Petroleum will be presenting at the EnerCom Dallas investment conference, Feb. 21-22 at the Tower Club in downtown Dallas. Institutional investors, portfolio managers, financial analysts, CIOs and other investment community professionals who invest in the energy space should register now.
