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Troutman Oil Co., Inc. of LaCygne, Kansas has developed a low-cost process for recovery of oil from shallow oil formations. The process (named "TWINCO2") relies on immiscible displacement of oil through the injection of flue gas in a cyclic injection program. It was first installed in the LaCygne-Cadmus field located in Linn County, Kansas. The project has been in continuous use since 1979. Oil production rates have stabilized and the project has proven to be cost-effective given its small investment requirements and low operating costs. Flue gas is generated by burning natural gas in an internal combustion engine. The exhaust gas is treated and is compressed to around 250 psi for injection into the reservoir. Following injection, the same well is converted to production and the well flows oil, water, and gas into surface separating units. The economics associated with this oil recovery process as reported in the paper have been process as reported in the paper have been updated to reflect 1989 prices and conditions. This analysis assumes that the oil producing wells and related oil production infrastructure are in place. The analyzed project area contained 51 wells in 225 acres. Incremental cost to install a system in 1989 similar in scale to that employed by Troutman Oil is estimated to be approximately $100,000. for the Troutman Oil scale of operations, the operating costs are estimated at $37,400 per year. Cash flow and profitability depend on the level of oil production, posted prices, and net revenue interest in a lease. For example, at a posted price of $20 per barrel and average oil price of $20 per barrel and average oil production of 15 barrels per day, the annual cash flow production of 15 barrels per day, the annual cash flow from the entire project is estimated at $43,000 assuming an 80 percent net revenue interest. This level of cash flow will payback the initial investment in 2.3 years (undiscounted) and yields an internal rate of return of 42 percent over a 10 year project life. Economic parameters are presented in this report which will enable the reader to estimate the economics associated with application of the process at a particular property, including the minimum oil production property, including the minimum oil production required to cover operating costs and repay the initial capital investment. PROJECT LOCATION PROJECT LOCATION The Troutman Oil Company flue gas, oil recovery project is located about 50 miles south of Kansas project is located about 50 miles south of Kansas City, Kansas (see Figure 1). P. 933

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A corrosion-testing apparatus which operates in the field and which willdetermine the comparative resistance of various ferrous materials to corrosionby gaseous hydrogen sulfide at ordinary temperatures is described. Theprinciple of the uniform method of testing is to allow natural gas containinghydrogen sulfide, direct from its source in the field, to flow over the groupof specimens for a given period of time, and subsequently to estimate thecorrosion sustained by each specimen by determining its loss in weight. Thecomparative results obtained when specimens of 47 representative ferrousmaterials of described typical composition were tested at ordinary temperatureswith natural gas containing hydrogen sulfide are given in tables showingaverage penetration of metal, inches per year. The primary purpose of the work was to determine the possible utility to thepetroleum and natural gas industries of ferrous materials that are commerciallyavailable, and no attempt is made to discuss the results of the tests from themetallurgical standpoint. The following is a summary of the resultsobtained:Steels containing 12 to 27 per cent of chromium showed the highestresistance to corrosion. The presence of nickel in these high-chromium steelsdid not affect their resistance.Steels containing approximately 5 per cent of chromium showed comparativelyhigh resistance, but somewhat less than that of the highchromium steels.