Grieve Pipeline

100% Elk owned and operated. The Grieve oil pipeline is a 32‐mile‐long (8‐inch diameter crude oil transport) steel pipeline that extends from the Grieve CO2 EOR project to a receiving station located at the Spectra Energy oil storage facility in Casper, Wyoming, our point of oil sale. 

Casper is a regional storage transportation hub with onward oil export links via pipeline, rail head and road. Elk holds its interest in the pipeline through its wholly-owned subsidiary Grieve Pipeline, LLC. 

Early in 2015 Elk received a draft proposed Asset Purchase Agreement from a potential pipeline buyer. After careful consideration it was decided not to proceed with a sale as the pipeline was considered too strategically important. The pipeline is the sole method of transport for oil production from the Grieve CO2 EOR Project and can be accessed by other Operators in the area of Grieve to export their oil, subject to oil transportation agreements being agreed with Elk’s subsidiary, Grieve Pipeline, LLC. In addition, the ownership of the pipeline was seen by Elk as a material piece of infrastructure to be successfully utilised as part of the security for the implementation of senior debt financing with Benefit Street Partners for the Grieve COEOR project. Subsequently, Denbury has entered into an oil transportation agreement with Elk to use our pipeline to transport Denbury’s share of Grieve oil to Casper. For Grieve Oil Export Pipeline transportation access Denbury will be charged US$3/bbl (escalated) on 100% of production payable to Elk Grieve Oil Pipeline, LLC.

During 2016 Elk’s Grieve Oil Pipeline, LLC undertook a detailed condition survey. Pipeline expenditure 2015-16 was US$49,000 and subsequent to year end pipeline remediation work is currently underway, in order to be ready for first oil export in Q4 2017. Capital expenditure over the 2016-17 financial year will be $2.25 million and covers pipeline repairs, cathodic protection, design and long lead items ordering along with installation and commissioning of equipment at Grieve and Spectra facilities.

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Head Office

Exchange House
Suite 101, Level 1
10 Bridge Street
Sydney NSW 2000
Australia
Tel: +61 2 9093 5400

Registered Office

Suite 2, Level 10
70 Phillip Street
Sydney NSW 2000
Australia
Tel: +61 2 9299 9690
Fax: +61 2 9251 7455

USA – Denver Office

1600 Broadway
Suite 1720
Denver, CO
80202 USA
Tel: +1 (720) 744-4883