Making CO2 Floods Profitable

How can Kinder Morgan CO2 help make a CO2 flood potentially profitable for me?

Estimated costs for a new CO2 flood, based on a price of $18/BOE, show a profit potential of more than $7/BOE. That's because we approach the problem from every possible direction:

First, by the time we agree on a deal, we have an excellent understanding of your reservoir. Additionally, through our experience and use of analytical tools, we are confident in our ability to predict the success of a CO2 flood. These factors can help reduce your risk significantly.

Second, we design a flood for maximum profit from the ground up. We combine CO2 with waterflooding and concentrate on the "sweet spots." And we stage the flood so that the CO2 can be captured and recycled. This reduces the amount of CO2 purchased, and it helps eliminate big investments for compression and separation. Recovered CO2 can be usually reinjected after simple dehydration, without separating out hydrocarbon gases. The result? Typically, it costs only 10% more to operate a CO2 flood than a waterflood (exclusive of the cost of CO2).

Third, we offer innovative and creative financing deals that can dramatically reduce the payout time -- from 8 to 11 years down to four to six. Read on!


Making CO2 Floods Affordable

What kind of creative financing does Kinder Morgan CO2 offer?

What kind of creative financing do you need? Kinder Morgan CO2 Company, L.P. is an industry leader in customizing deals to make CO2 floods affordable whenever they can be profitable for you.

By dealing with Kinder Morgan CO2, we can help you increase the earning power of a CO2 flood project (say from 15% to 20%) and possibly cut the payout time in half. We encourage the careful use of CO2 by requiring buyers to pay for a portion of its cost as it is injected, but we are flexible on all other terms. We can:

  • Finance CO2 supply;
  • Vary the price of CO2 depending on time and/or the field's response to CO2; or
  • Trade CO2 for a working interest or overriding royalty interest in the field.

What did you have in mind?
Come talk with us about your potential CO2 flood.
Can you afford not to?
Contact Kinder Morgan CO2 for a full package of resources and technology.

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