- Australian-led Byron Energy (BYE) is bolstering production in the Gulf of Mexico by kickstarting construction at one of its many offshore projects
- The company’s ‘SM58 G’ platform, situated offshore from Louisiana, will go under construction to install an oil and gas pipeline early next month
- Weather permitting, the construction period is expected to take place over the next 20 days
- Shares in the company gained 6.45 per cent over Tuesday trade to close at 16.5 cents each
Australian-led Byron Energy (BYE) is bolstering production in the Gulf of Mexico by kickstarting construction at one of its many offshore projects.
Announced on Tuesday, the company’s ‘SM58 G’ platform, situated offshore from Louisiana, will go under construction to install an oil and gas pipeline early next month.
Development permits were finalised earlier this month for the ‘SM58 G’ platform. In mid-May, the company received a $16 million placement to fund exploration.
Byron Energy Chief Executive Maynard Smith described the installation as an important step in boosting operations off the coast of Louisiana.
“Even with all of the recent issues in the oil industry, our team in Lafayette, Louisiana has been able to deliver a top-quality nine slot production platform capable of handling 8000 barrels of oil per day and 80 million cubic feet of gas per day on time and on budget,” Maynard explained.
“The construction process has progressed very smoothly, and we are excited that the time to set the G Platform has arrived,” he continued.
Materials for the SM58 construction are being transported from mainland Louisiana. If weather permits, the process should take 20 days total.
“Our primary goal right now is to bring [the well] into production,” Maynard added.
Byron Energy holds total operator rights and working interest on site. The company also holds the majority of net revenue interest at 83.33 per cent.
However, any resources 13,639 feet below the sea are held in partnership with a collaborating operator. Although, Byron Energy stated on Tuesday that SM58’s payload is estimated to be above that threshold.
Shares in Byron Energy on the Australian market gained 6.45 per cent over Tuesday trade. Value closed at 16.5 cents each.