Byron Energy has encountered three discrete hydrocarbon bearing intervals at its latest exploration development in the South Marsh Island block in the Gulf of Mexico.
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Hercules 205 jackup, from Hercules. |
SM 71 #1 is located 250km southwest of New Orleans in South Marsh Island Block 71 (SM 71) at 131ft (40m) water depth. The well, drilled with the Hercules 205 jackup, reached 6843ft (2086m) total depth, where three discrete hydrocarbon bearing sands were intersected.
Upon completing a preliminary evaluation using gamma ray/ resistivity logging while drilling (LWD) tools, Byron was able to identify 20 ft (6m) in the I3 sand; 30ft (9m) in the J sand; and 100ft (30m) in the D5 sand. Indications of oil were seen on cuttings from the D5 sand interval and all hydrocarbon bearing zones demonstrate elevated wet gas readings, and significant proportion of these hydrocarbon bearing sands will result in net hydrocarbon pay, Byron confirmed.
A porosity log is expected to determine net pay counts.
The primary target, the D5 sand, exhibits excellent quality. The J Sand, a secondary target, was found within predrill expectations and was intersected 220ft (67m) up-dip of the highest productive well in the J sand interval, Byron said.
Preliminary results have indicated that the three hydrocarbon intervals are of commercial value, and Byron will move forward with completion and ultimate production of the well.
“The SM 71 well is a significant discovery and not only allows Byron to become a producer, it validates our use of RTM technology in and around previously productive salt domes,” Maynard Smith, Byron chief executive said. “We have employed this same technology on a number of other blocks in the Gulf of Mexico and have developed additional prospects which will be tested in due course."
SM 71 #1 is the second well to be drilled as part of Byron’s farm-out to Otto Energy. The well was spudded earlier this month.
In March, Byron abandoned the SM 6 #2 sidetrack well after encountering issues with a drill pipe becoming stuck.
Byron, through its wholly owned subsidiary Byron Energy, is the operator of SM 71 and currently holds 100% working interest, and an 81.25% net revenue interest.
Pursuant to the farm-out agreement, Otto will pay 66.67% of the SM 71 #1 estimated dry hole costs (US$4.5 million) to earn a 50% working interest in the SM 71 and SM 70 leases. If Otto earns an interest in the SM 71 and SM 70 blocks, Byron’s working and net revenue interests will be reduced by 50% at the earn-in point, to 50% and 40.625% respectively.
Read more:
Byron abandons GoM well, moves to next
Byron drills GoM appraisal following stuck pipe drill
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