Progress is reported for the period from April 1, 2001 to June 30, 2001. Assessment of the demonstration site has defined many aspects of the reservoir. However, uncertainty in reservoir permeability distribution and residual oil saturation is sufficiently great that assuring viability of the project warrants further reservoir characterization. Economic and recovery analysis of the Colliver lease, based on the existing reservoir model, indicates that a lease pattern of 60-acres provides the oil production revenues and CO2 usage needed for the demonstration to be economically viable for MV Energy LLC and ICM Inc