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GoM: Byron Energy spuds SM74 D-14 well on the South Marsh Island 74 block

16 May 2019

  • Byron operated SM74 D-14 exploration well has commenced drilling
  • The well is being drilled from Ankor’s SM73 D platform, utilising the White Fleet Drilling 350 jack-up rig
  • Significant capital savings and reduced cycle time to first production if hydrocarbons are discovered
Photo - see caption

Byron Energy has announced that the White Fleet Drilling 350 jack-up rig has commenced drilling operations on the Byron-operated SM74 D-14 well, the first test well on the South Marsh Island 74 ('SM74') block and has drilled to 825’ Measured Depth (“MD’). Current operations are preparing to run and cement 20” conductor pipe.

The SM74 D-14 well is being drilled from the SM73 D platform. As previously announced on 19 September 2018, Byron signed an agreement with Ankor Energy, the offset operator of SM73,to drill from and, in the success case, produce through the SM73 D platform. This arrangement reduces the threshold of economic reserves by eliminating the need to build a new platform and offers significant capital savings in infrastructure as well as reducing the cycle time to first production if hydrocarbons are discovered.

The SM74 D-14 well will be drilled to a depth of 16,747 feet MD (14,726 feet True Vertical Depth) and is expected to take approx. 50 days to drill. The SM74 D-14 well will test multiple amplitude supported target sands with mapped gross prospective resource potential of 5.2 million barrels of oil ('mmbo') and 13.2 billion cubic feet ('bcf') of gas, 3.0mmbo and 7.5 bcf net to Byron. The equivalent target section is an established producer in fields to both the east and west of the SM73 Field, buthas been sparsely tested within the SM73 Field.

Byron has farmed-out a 30% working interest share of the SM74 prospect to Metgasco on industry standard terms whereby Metgasco will earn their interest by paying 40% of the $11.4 million initial well dry hole costs and Byron will pay the remaining 60%. Both companies will then bear their respective working interest costs after the initial well is drilled to total depth. Byron, through its wholly owned US subsidiary Byron Energy Inc., is the operator of the well.

Byron will issue progress reports on the SM74 D-14 well as material developments occur.

SM71 Production Update

Byron also advises that the SM71 Field has now returned to production after a scheduled shut in by the pipeline owner, Crimson Gulf, for maintenance. The shut in was forecasted to take 4days but unexpected weather and operational delays resulted in a total shut in of 7 days. Byron, through its wholly owned subsidiary Byron Energy Inc. is the operator of SM71 and has a 50% working interest and a 40.625% net revenue interest in SM71. Otto Energy holds the remaining interest in SM71.

Maynard Smith, Byron’s CEO had this to say regarding the SM74 D-14 exploration well:

'We are pleased to move into thedrilling phase on SM74 D-14.We look forward to testing this Reverse Time Migration (RTM) based prospect from an existing platform location which, if successful, speeds up cycle time to first production but also greatly enhances the project economics.

'SM74 D-14 is a high-quality exploration opportunity with stacked objectives along the east flank of the dome. It isan important step in evaluating the deeper stratigraphic section on Byron’s South Marsh Island Area leasehold acreage in the Gulf of Mexico shelf over the next 2-3 years.'

Original article link

Source: Byron Energy

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