The overall objective of this project is to demonstrate that development program based on advanced reservoir management methods can significantly improve oil recovery. The demonstration plan includes developing a control area using standard reservoir management techniques and comparing the performance of the control area with an area developed using advanced reservoir management methods. specific goals to attain the objective are (1) to demonstrate that development drilling program and pressure maintenance program, based on advanced reservoir management methods , can significantly improve oil recovery compared with existing technology applications, and (2) to transfer the advanced methodologies to oil and gas producers in the Permian Basin and elsewhere in the US oil and gas industry. This is the second quarterly progress report on the project. Results obtained to date are summarized.

A phase II study has been initiated to investigate surfactant-assisted coal liquefaction, with the objective of quantifying the enhancement in liquid yields and product quality. This report covers the fifth quarter of work. The major accomplishments were: (1) Completion of coal liquefaction autoclave reactor runs and related analysis with Illinois no. 6 coal at 400{degrees}C with and without surfactant and/or catalyst at pressures of 1700 psig; (2) A literature search into the effect that lignin has in the coprocessing of coal; and (3) Presentation of a report summarizing the first year of work on this task at the Annual Liquefaction Contractors Review Conference. Results from this quarter show that lignosulfonate surfactant continues to increase overall MAF conversion of Illinois no. 6 coal at temperatures up to 400{degrees}C and produces an improvement in light boiling fraction distillate over the base case of no surfactant addition.