Byron Energy will further its efforts at the SM71-1 well in the Gulf of Mexico after encountering the presence of oil in three intervals, according to partner Otto Energy.
A quad combo porosity logging run has been acquired and 7 5/8in casing has been run and cemented to a depth of 6820ft measured depth (2078m) /6471ft true vertical depth (1972m). Based on the initial logging results, Otto has determined preliminary estimates of net true vertical thickness (TVT) oil pay counts for the SM71 #1 well are as follows: I3 sand with 17ft TVT net oil pay, J sand with 24ft TVT net oil pay, and D5 sand with 91ft TVT net oil pay.
The quad combo log, which includes neutron/density and sonic porosity data, is currently undergoing complete analysis, however, log experts, including those from Baker Hughes, confirm that the log demonstrates the presence of oil across all three pay intervals identified in the company’s previous release earlier this month. These zones are correlative and analogous to productive zones from the SM71 and adjacent SM72 fields. A final, processed version of the log will be available later this week and will be used for further analysis to determine final net pay counts in the I3 sand, J sand and D5 sands. Additionally, Isotube samples from each sand interval have been sent to a laboratory for full analysis of hydrocarbon properties including estimates of API gravity and BTU content.
The SM 71 reserve and resource estimates, incorporating the results of the SM 71 #1 well, will be updated as soon as practicable by independent reserves certifier, Collarini and Associates.
Deepening of well to test further oil potential
Given the excellent results delivered in the drilling to date, the joint venture has elected to deepen the well by approximately 600ft/182m to the original planned TD of the SM71 #1 well to ensure the entire package of D5 Sand lobes have been evaluated. Further the D6 Sand, a secondary pre-drill target lies below the D5 Sand and will also be evaluated by deepening the well. The cost to deepen the well to the original permitted depth of 7452ft MD/ 6900ft TVD (2272m MD/ 2104m TVD) will be within the original AFE well cost estimate.
Current operations are installing and testing blow out preventers, picking up 3 1/2in drill pipe prior to re-commencing drilling operations mid-week. The well should reach total depth late this week.
“The SM-71 #1 well has delivered an excellent start to Otto’s drilling campaign in the Gulf of Mexico and is an early vindication of Otto’s entry into the region through its staged, optional, farm-in transaction with Operator, Byron Energy. We are very encouraged by these results and look forward to evaluating the deeper D6 sand interval in the coming week, which has the potential to add further to the success of this well. Pleasingly, and due to operational efficiency, the cost of testing of this deeper target is expected to remain within the original AFE amount. We are seeing significant shareholder value being created with this drilling campaign and we look forward to achieving our goal of a return to production in 2017,” Otto’s managing director, Matthew Allen said.
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