Byron drills GoM appraisal following stuck pipe drill

Byron Energy has started drilling a sidetrack well to the SM 6#2 well in the Gulf of Mexico, after a drill pipe became stuck with several unsuccessful attempts over a three-day period to free it, according to partner Otto Energy.

Map of South Marsh Island 6, from Otto Energy.

Sidetrack operations are at a depth of 7949ft (2423m) measured depth (7780ft/2372m) true vertical depth) after a successful back off of the drill-pipe.

Byron plans to drill the side-track well bore, with a conventional 8 1/2in diameter hole as originally planned, along a path parallel to the originally planned well-bore to a total measured depth of 9516ft (2900m) (9138 ft/2785m true vertical depth.

On 20 March, Byron began preparing to trip in the hole to set a cement kick off plug at a depth of 7949ft (2423m) measured depth (7780ft/2,372m) true vertical depth). Drilling operations should resume later in the week after a required BOP test which will be performed as the cement cures.

SM 6 #2 is being drilled in water depth of approximately 65ft (20m). The well is being drilled on a prospect in the south west corner of a major salt dome in South Marsh Island 6, located offshore Louisiana, 216km southwest of New Orleans, Louisiana.

On 18 March 2016, the drill pipe at SM 6 #2 well became stuck at a depth of 8039ft (2451m) measured depth (7860ft/2396m true vertical depth), approximately 400ft above the primary target reservoir, the G 20 Sand. For three days Byron attempted to free the stuck drill pipe. These attempts were unsuccessful.

The SM 6 #2 well is the first well to be drilled as part of Byron’s farm-out to Otto Energy, announced on 11 December 2015.

Byron currently has a 100% working interest and an 81.25% net revenue interest in SM 6. If Otto earns an interest in the SM 6 block, Byron’s working and net revenue interests will be reduced by 50% at the earn-in point, to 50% and 40.625% respectively.

In order to earn a 50% working interest (equal to a 40.625% net revenue interest) in SM 6, Otto will contribute 66.67% of the total estimated costs of the SM 6 #2 well of US$8 million ($5.3 million Otto and $2.7 million Byron). Any costs above $8 million in respect of the SM 6 #2 well and all future expenditure in SM 6 will be in accordance with Byron’s and Otto’s respective working interest (Byron 50%/Otto 50%).