Byron Energy has spudded the SM-6 #2 well in the U.S. Gulf of Mexico using the Hercules 205 jack-up drilling rig.
The well is being drilled in water depth of approximately 20 meters/65 feet, with a planned total measured depth of approximately 2,900 metres/9,516 feet and total vertical depth of 2,785 metres/9,138 feet.
It is anticipated that the well will take approximately 40 days to drill and evaluate, said Otto Energy, a partner in the project.
The SM-6 #2 well is the first well to be drilled as part of Otto’s farm-in transaction with Byron announced in December 2015.
According to Otto Energy, the SMI-6 lease is part of a portfolio of low cost, high chance of success, conventional oil and gas opportunities located both onshore and offshore the Gulf of Mexico, which Otto has the option to participate in as part of the transaction.
In order to earn a 50% working interest (equal to a 40.625% revenue interest) in the SMI-6 Lease, Otto will contribute 66.67% of the costs of the well (estimated at US$5.3 million net to Otto)).
Any costs above this amount in respect of the SM-6 #2 well and all future expenditure on the license will be in accordance with Otto and Byron’s participating interest (Otto 50%).