The objectives of this project are to continue reservoir characterization of the Cypress Sandstone and identify and map a series of Facies Defined Waterflood Units (FDWS); and to design and implement water-alternating-gas WAG injection utilizing carbon dioxide. The producibility problems are permeability variation and poor sweep efficiency. Part 1 of the project focuses on the development of a computer generated geological model that will be used to select sites for the demonstration in Part 2. Included in Part 1 of the project is the drilling of an infill well, coring 100{prime} of the Cypress Sand, and various injectivity testing to gather information used to update the model. Part 2 involves field implementation of WAG. Technology Transfer includes outreach activity such as seminars, workshops, and field trips. Accomplishments for this quarter are presented.