The work reported here covers Budget Phase I of the project. The principal tasks in Budget Phase I are the Reservoir Analysis and Characterization Task and the Advanced Technology Definition Task. Completion of these tasks have enabled an optimum carbon dioxide (C02) flood project to be designed and evaluated from an economic and risk analysis standpoint. Field implementation of the project has been recommended to the working interest owners of the South Cowden Unit (SCU) and approval has been obtained. The current project has focused on reducing initial investment cost by utilizing horizontal injection wells and concentrating the project in the best productivity area of the field. An innovative CO2 purchase agreement (no take or pay requirements, CO2 purchase price tied to West Texas Intermediate (WTI) crude oil price) and gas recycle agreements (expensing cost as opposed to large capital investments for compression) were negotiated to further improve project economics.