Otto Energy rejoins Byron in Gulf of Mexico drilling program
- Exploration & Production
After refusing to participate in Byron Energy’s SM71 F4 well in the Gulf of Mexico, Otto Energy has decided that it will be participating in the drilling of the next well, named SM71 F5.
Byron Energy said on Thursday that, upon the successful drilling of the SM71 F4 well which logged hydrocarbons in the D5 Upper Sand, it proposed the drilling of a new SM71 development well to its partner Otto Energy.
The proposed well is designed to test and evaluate the D5 Sand in the same location presented to Otto in August 2019. Otto has elected to participate in the SM71 F5 well.
Due to spatial constraints on the SM71 F platform, several concerns were addressed in order to finalize the positioning of the Enterprise 264 drilling rig in order to make a final drill decision.
According to Byron, those concerns are resolved and the project will move forward. The well will be drilled in direct continuation of the completion operations on the SM71 F4 and is expected to start around March 1. The SM 71 F4 well is expected to begin production in 4-6 weeks.
The company added that the F5 will test a portion of the D5 Sand reservoir that may be poorly drained, if at all, by the F3 well. The primary D5 Sand has now produced over 2 million barrels of oil, water-free, from the Byron-operated F1 and F3 wells since March of 2018.
The new well has a planned total depth of 8,788 feet measured depth (7,768 feet true vertical depth) and is expected to take 25 days to drill and evaluate. If the well is successful, completion operations would follow immediately and take another 14 days.
To remind, Otto elected not to participate in the previous F4 well, giving Byron a 100 percent working interest in the well. The F4 well hit a total of 91 feet measured depth of net hydrocarbon pay (87 feet true vertical thickness) which was at the upper end of predrill expectations.
Byron’s CEO, Maynard Smith said: “Drilling the F5 at this time is a good business decision. With the rig in place and its crews working efficiently, this well can be drilled cheaper now than any time in the foreseeable future.
“We are pleased that Otto has elected to participate and look forward to a successful outcome in a few weeks’ time.”
In a separate statement, Otto Energy managing director and CEO Matthew Allen said: “Otto is very pleased to progress the drilling of this exciting well at the flagship SM71 field.
“The F5 well has the potential to add significant additional production to the facility in a reservoir that has proven in the nearly two years since first production to be amongst the best of recent discoveries on the Gulf of Mexico shelf.”
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