The agreement was originally announced in late November but after completing due diligence, the deal has been finalised. Elk will use the carbon dioxide for its enhanced oil recovering project at the Singleton and adjoining oil fields, close to the Bridgeport plan.
The plant produced more than 150,000 US tons of carbon dioxide per year or about 7 million cubic feet per day. It is almost pure carbon dioxide and requires little processing other than compression and dehydration. The agreement will last for 10 years with potential for extension. Elk will have three years to build compression and pipeline facilities before the purchase agreements starts.
The company said access to these supplies was key to building a carbon dioxide-based enhanced oil recovery strategy in Nebraska and the wider area. The Singleton oil field is the largest in the area and will act as an anchor project. Development could take less than two years and first oil production could occur as early as 2016, according to Elk.
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