Operations

Aneth Field was discovered in 1956 and developed by Texaco, Superior, Phillips and Shell. Aneth Field is a classic "giant" oil field with original oil in place estimated to be approximately 1.5 billion barrels. Extensive drilling and development activities were undertaken during the 1960’s and secondary recovery was instituted in 1961, only a few years after discovery. The field has been under waterflood since 1961 and a major CO2 flood was begun on the McElmo Creek Unit in 1985. During the 1990’s, horizontal drilling and additional CO2 flooding were instituted in certain areas of the field. However, because the three units were operated by different companies, coordinated field-wide activities were not possible.

Elk Petroleum's field staff consists predominantly of members of the Navajo Nation who live in the area. Navajo Nation Oil & Gas Company also has an ownership interest in the field. We work closely with that company and the agencies of the Navajo Nation that impact our operations.

Elk Petroleum has identified several areas in which field enhancements are possible, including additional CO2 flooding, workovers and infrastructure upgrades. Elk Petroleum has completed infrastructure build-out on the majority of the Aneth Unit CO2 flood. CO2 injection began in 2007 and is now underway across approximately 75% of the unit. A positive, economic, production response has been established resulting in increased field reserves and field life.

• Elk Petroleum operates all three units

• Elk Petroleum has a 62% working interest in the Aneth Unit, a 68% WI in the McElmo Creek Unit and a 59% WI in the Ratherford Unit