Our waterflood properties are cash generating assets with relatively low production decline rates that provide stable cash flow to help support the growth and yield focus of our business. We have a diverse mix of waterflood properties in our portfolio, targeting formations such as the Ratcliffe, Glauconitic, Cardium, Viking, and Lloydminster. Over 25% of our total proved plus probable reserves are in our waterflood properties, accounting for 18% of our total production. We plan to spend $150 million on our waterflood assets in 2012.
Opportunities for both enhanced oil recovery (EOR) and improved oil recovery (IOR) exist across many of our waterflood assets. According to internal estimates in 2011, we have 60.5 million BOE of best estimate contingent resource across our waterflood properties as a result of EOR/IOR opportunities. We have two EOR projects currently underway. The first is a polymer flood at Giltedge, which commenced in the second quarter of 2011. Our second project is a similar polymer flood at our Medicine Hat, Alberta property that we expect to move into a pilot stage sometime in 2012. This technology could be applied to a number of our waterflood properties and increase the recovery of oil by 5 - 15%. With over 1 billion barrels of original oil in place, this could be significant future reserves growth.
About EnerplusEnerplus is an independent North American energy company with a diversified asset base of oil and gas properties across a variety of resource plays. We are focused on creating value for our investors by providing organic growth in production and reserves complemented by a monthly dividend. more
