My understanding is a pilot study will raise 3P reserves to 2P. In the case of a CO2 flood you are right, a pilot study is impractical because they need to repressurise the entire field and that would result in 1P reserves.
With a chemical flood it is practical to flood one well only and test the process. If successful it should reclassify some (if not all) the 3P reserves to 2P.
I think managmenent has decided to go along this path and a final decision will be made shortly after the university report is received, with flooding to get underway early 2009 after the northern winter.
ELK Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
