- Byron Energy (BYE) shares are trading in the green after the company encountered three primary sand targets at its South Marsh Island well
- The well has been drilled to 8157 feet and logged three productive oil sands
- Byron says a fourth target was found to have oil water contact, which Bryon believes could host a future well
- While encouraged by the process, Bryon may have to hold off on casing the well after tools became stuck while trying to exit the hole
- Byron Energy shares were up 12.5 per cent at 12:19 pm AEST to trade at 12.5 cents
Byron Energy (BYE) shares are trading in the green after the company encountered three primary sand targets at its South Marsh Island well.
Drilling at Byron’s South Marsh Island 69 E2 well sought to test an undrilled fault black adjacent to production from the SM58 E1 well.
All of Byron Energy’s blocks are located in the Outer Continental Shelf and Transition Zone of the Gulf of Mexico, offshore of Louisiana.
Byron said drilling at the South Marsh Island well reached a total depth of 8157
feet on September 9, 2021, and logged three productive oil sands, including the primary targets K, K4 and L2 sands.
The company said a fourth target —the M6 Sand — was found to have an oil water contact which Byron believes could host a future well from the SM69 E platform.
Byron has laid pipelines from the SM69 E in anticipation of potential production, which it believes could speed up the cycle time to first production should it commence.
Despite making progress, Bryon may have to hold off on casing the well after tools became stuck while trying to exit the hole.
The company expects the wellbore can be preserved and casing is set to continue in the next two to three days.
Byron Energy Chief Executive Officer Maynard Smith said the downhole problems were frustrating but had no material effect on the lifetime economics of the operation.
“Overall, our SM69 E2 well met or exceeded pre-drill expectations and is a technical success,” he said.
“The E2 is a good example of our strategy, and we expect it to provide stable, low cost, high margin cash flow for many years to come.”
Byron Energy shares were up 12.5 per cent at 12:19 pm AEST to trade at 12.5 cents.