The overall goal of this project is to assess the economic feasibility of CO2 flooding the naturally fractured Spraberry Trend Area in West Texas. This objective is being accomplished by conducting research in four areas: 1) extensive characterization of the reservoirs, 2) experimental studies of crude oillbrine/rock (COBR) interaction in the reservoirs, 3) reservoir performance analysis, and, 4) experimental investigations on CO2 gravity drainage in Spraberry whole cores. This report provides results of the second year of the five-year project for each of the four areas.