Otto kicks off production from F5-ST Bypass well in Mexico

Otto Energy (ASX:OEL) has kicked off production at the F5-ST Bypass well, operated by Byron Energy Inc. within the South Marsh Island 71 lease in the Gulf of Mexico.

Production commenced on November 30, with the well averaging 1.2 MMscf/d of gas production, and 4 bbl/d of oil production during the first eight days of flow back on a constrained 25/64th-inch choke.

On December 12, it began being operated on a less constrained basis and was flowed on a 37/64th-inch choke for four hours, achieving a rate of 4.1 MMscf/d of gas production and 17 bbl/d of oil production.

The production start was facilitated following the release from the location of the Enterprise 264 jack-up rig on November 24, with offshore construction crews hooking up flowlines and other necessary equipment to begin production from the F5-ST Bypass well through processing facilities on the SM 71 F platform.

This production ultimately then began on November 30.

Otto’s acting CEO Phil Trajanovich said the production results from this well had been surprising at this early stage.

“We will continue to produce the well-observing production rates and pressures so future production can be more accurately predicted and the relationship between F5 and other wells in the field can be more clearly understood,” he said.

He added: “We will provide additional updates to the market as further production information becomes available.”

Otto has been trading at 1.1 cents.

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