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Denbury poised to begin construction on Greencore CO2 pipeline for EOR operations in Wyoming and Montana

Billings Gazette. Denbury Resources, a CO2 Enhanced Oil Recovery (EOR) company, will soon begin construction on the Greencore Pipeline—a 232-mile, 20-inch pipeline through Wyoming to Montana that will move CO2 to mature and depleted oil fields in both states for EOR. Denbury expects work to begin on the line in mid-August, pending a final go-ahead from federal regulators, and complete work in late October or early November.

Denbury
The Rockies is one of two main EOR targets for Denbury. Click to enlarge.

The first segment of the pipeline will start at the Lost Cabin gas plant in Fremont County, Wyoming and run northeast through the state. In 2012, the pipeline is planned to be completed into southeast Montana, where it will initially terminate at the Bell Creek Field located in Powder River County, Montana.

The Greencore Pipeline is the initial portion of Denbury’s planned pipeline infrastructure in the Rocky Mountain region and will connect various sources of CO2 to the company’s oil fields. In the Rocky Mountain region, Denbury currently own two fields that the Company plans to flood with CO2, Bell Creek Field and Cedar Creek Anticline (CCA).

In addition to the initial CO2 source at Lost Cabin, Denbury is in various stages of discussions with several other entities. The Company will continue to seek additional CO2 sources, as the Rocky Mountain region has other potential opportunities for CO2 EOR growth and expansion.

In June, Denbury said it was buying full interest in the Riley Ridge methane and helium production plant near Big Piney. The plant will also produce CO2. Denbury, which has interests in oil fields in Montana, is also getting into the oil production business in Wyoming.

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