This project is a field demonstration of the ability of in-situ indigenous microorganisms in the North Blowhorn Creek Oil Field to reduce the flow of injection water in the more permeable zones of the reservoir, thereby diverting flow to other areas thus increasing the efficiency of the waterflood. The project is divided into three phases: Planning and Analysis (9 months), Implementation (45 months), and Technology Transfer (12 months). This report covers the fourth year of work on the project. Twenty-two months after the injection of nutrients into the reservoir began, three wells were drilled and cores taken therefrom were analyzed. Oil production volumes and water:oil ratios (WOR) of produced fluids have shown clearly that the MEOR treatment being demonstrated in this project is improving oil recovery. Of the 15 producer wells in the test patterns, seven have responded positively to the injection of microbial nutrients into the reservoir, while all eight of the producer wells only in control patterns have continued their natural decline in oil production, although one well did have some improvement in oil production due to increased water injection into a nearby injector well. In light of these positive findings and with DOE`s approval, the scope of the field demonstration was expanded in July 1997 to include six new injector wells. Of interest has been the performance of two wells in what was formerly a control pattern. Since the injector in this pattern (formerly Control Pattern 2) began receiving nutrients, two of the wells in the pattern have shown improved oil production for the last three months. While it would be premature to definitely characterize these two wells as yielding a positive response, these early results are certainly encouraging.