The objectives of this were two fold. First, core displacement studies were done to determine whether microbial processes could recover residual oil at elevated pressures. Second, the importance of biosurfactant production for the recovery of residual oil was studies. In these studies, a biosurfactant-producing, microorganisms called Bacillus licheniformis strain JF-2 was used. This bacterium produces a cyclic peptide biosurfactant that significantly reduces the interfacial tension between oil and brine (7). The use of a mutant deficient in surfactant production and a mathematical MEOR simulator were used to determine the major mechanisms of oil recovery by these two strains.