Byron buys used offshore platform for Gulf of Mexico discovery
Byron Energy, an oil company operating in the U.S. Gulf of Mexico has signed a deal to buy a production facility through which it will develop its gas discovery offshore Louisiana.
According to Byron, the company will buy from Laredo Construction a used tripod jacket, decks, helideck, boat landing and production equipment that will be set and utilized at its South Marsh Island Block 71 discovery.
Under the agreement, Laredo will make the necessary modifications and refurbish the production equipment as needed for production. Laredo will also provide turnkey installation of the tripod once the work is complete and permits are approved. The tripod structure was recently removed from service and has been transported to Laredo’s yard in Galveston, Texas USA.
Laredo will perform all services at its Galveston construction facility under the supervision of Byron, the operator of SM 71.
All phases of the modification, refurbishment and summer installation are fixed in cost at a total less than US$4.5 million.
The tripod facility is capable of accommodating 6 wells and will be capable of producing in excess of 5,000 barrels of oil per day along with produced natural gas.
Byron holds a 50% working interest and a 40.625% net revenue interest in SM71 after farming out an interest in the SM71 project to Otto Energy Limited (“Otto”). Otto holds identical interests in the block and as such is responsible for 50% of all costs incurred to bring the SM71 #1 well online to production, Byron explained.
Once all necessary permits are applied for and approved, construction work will take approximately 16 weeks. Byron expects to have all permits filed with the Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety Energy and Environment (BSEE) before the end of October with subsequent approval time ranging up to 120 days.
As reported on 2 May 2016, Byron drilled the SM71 #1 well to a total depth of 7,477 feet measured depth. The SM71 #1 well logged over 150 feet of hydrocarbon pay in four sands. The well was left in mudline suspension for future production. Byron’s independent reserve auditors, Collarini Associates have assigned 2P reserves of 2.028 million barrels of oil net to Byron’s working interest in the SM71 project.