Byron hits pay in Gulf of Mexico well

U.S. oil company Byron Energy has encountered four discrete hydrocarbon bearing sands in the SM 71 F2 well within the South Marsh Island 71 (SM 71) lease in the Gulf of Mexico. 

Byron Energy holds a 50% working interest in the SM 71 lease and Otto Energy has the other 50% interest.

Byron started drilling the SM 71 F2 well in early December, using the Ensco 68 jack-up rig. The well had two targets: the D5 Sand and the B65 Sand.

On December 25, 2017 (11.00 PM USA Central Time) the F2 well had reached a depth of 8,615 feet measured depth (MD), Otto Energy informed on Wednesday.

A triple combo Log While Drilling (LWD) tool, which includes neutron/density porosity data, has been acquired over the prospective portions of the wellbore. Based on preliminary evaluation, the transmitted resistivity and porosity log data demonstrates the presence of oil across all four separate pay intervals.

According to Otto, all four sands exhibit excellent reservoir quality and are expected to be capable of high quality production based on analogous productive zones from the SM 71 and 73 Fields. Each of these four sands has been productive in other areas of the SM73 field.

Net oil pay counts are preliminary and based on the transmitted LWD data. Final pay counts will be calculated if, and when, logging while drilling (LWD) memory data becomes available and upon the completion of a petrophysical analysis, Otto said.

While drilling the final section of the hole in the F2 well below the D5 interval, referred to as the “rathole” (extra hole drilled at the end of the well beyond the last zone of interest in order to facilitate completion), the drill pipe became stuck approximately 214 feet below the bottom of the D5 Sand. The current operation, at 2.00 pm USA Central Time, December 26, 2017 is working to free stuck drill pipe.

Otto added that the results of the F2 well will result in a significant uplift in booked reserves volumes as a result of notable improvements in the D5 interval and the transfer of the B65 from prospective resources to reserves.

Otto’s Managing Director, Matthew Allen, commented: “The SM71 F2 well has delivered a result that has significantly exceeded the joint ventures pre-drill expectations in both the B65 and D5 zones. This is an exciting and rewarding outcome for the joint venture and Otto’s shareholders. The incremental oil volumes that will be added to this development are very high value as the joint venture has already installed its own production platform facilities.”

Otto’s Chairman, John Jetter, commented: “Otto looks forward to the completion of the drilling program and the commencement of production from the field in 2018. Otto congratulates Byron on its excellent technical work in developing and executing this well. Otto’s strategy of investing in high value, low risk exploration drilling opportunities has been further validated with these results.”