News Releases

News Release - Manitoba

November 24, 2008

$5-MILLION OIL PROJECT INVESTIGATES USE OF CARBON DIOXIDE



A state-of-the-art, enhanced oil recovery pilot project that has the potential to increase oil production and simultaneously reduce greenhouse gas emissions is being tested in southwestern Manitoba, Science, Technology, Energy and Mines Minister Jim Rondeau said today, while touring the Sinclair oil field.
 
“By encouraging carbon dioxide enhanced oil recovery, we may get the double benefit of preventing carbon dioxide (CO2) from being released into the air while getting more oil out of the ground,” said Rondeau.  “I am very pleased that Manitoba-based Tundra Oil & Gas is staying at home, investing in our province’s petroleum resources and confirming that Manitoba is a good place to do business.”
 
Rondeau congratulated Tundra for launching the first Manitoba C02 enhanced oil project which will determine the feasibility of recovering additional oil from the Sinclair Field west of Virden by injecting and storing CO2 deep inside the earth. Manitoba has participated in this experiment by offering royalty relief to help offset initial startup costs. If the project is successful, this incentive will be more than recovered by royalties on the additional oil produced by the technique.
 
The project, located 30 kilometres southwest of Virden, will determine if it is feasible to capture CO2 from large industrial emitters in Manitoba and inject the CO2 in existing oil pools to increase oil recovery while storing the CO2 underground.
 
It is anticipated that this process will increase the amount of oil that may be recovered in the pilot project area while reducing the amount of CO2 that would otherwise be released in the atmosphere.
 
Koch Fertilizer Canada’s plant in Brandon is the source for the CO2, which is trucked to the Sinclair Field by Praxair and injected into the oil reservoir.
 
CO2 enhanced oil recovery projects are operating commercially in other jurisdictions.  The closest project is EnCana Corporation’s Weyburn Project in southeastern Saskatchewan, which has been very successful.
 
- 30 -
 
BACKGROUND INFORMATION ATTACHED


Backgrounder
Co2 Enhanced Oil Recovery - http://www.gov.mb.ca/asset_library/en/newslinks/2008/2008nov./NewCO2OilRecovery.ST.doc