Australia-based Byron Energy has started drilling at the Cutthroat prospect located on its operated SM58 lease in the U.S. Gulf of Mexico.
Tugboats had been mobilized to meet the Enterprise 263 drilling rig and tow it to an open water location on Byron Energy’s SM58 lease last Thursday.
Byron Energy said on Wednesday, August 7 that, as of 1700 Hours US Central Daylight Time (USCDT) on August 6, 2019, the Enterprise 263 jack-up drilling rig had started drilling operations on the SM58 011 well, the company’s first test well on its recently acquired South Marsh Island 58 (SM58) block.
At 1700 hours USCDT, the company has drilled to 500′ Measured Depth (MD). Current operations are drilling ahead to 800′ MD prior to running and cementing 16″ conductor pipe.
The SM58 011 well will test Byron’s Cutthroat Prospect, targeting the highly productive normally pressured O Sands which account for about half of the 35 million barrels of oil produced on SM58 since production began in 1964.
The SM58 011 well will be operated by Byron and will be drilled to a depth of 11,466 feet Measured Depth (MD) (10,418 feet true vertical depth) and is expected to take approximately one month to drill and evaluate from the time the rig is on location.
The company will bear 100% of the cost of the SM58 011 well. Byron holds all the operator’s rights, title, and interest in and to the SM58 Lease Block to a depth of 13,639 ft. subsea with 100% Working Interest (WI) and 83.33% Net Revenue Interest (NRI).
To date, all identified drilling opportunities on the SM58 lease are above 13,639 feet subsea. Below 13,639 feet subsea, Byron has a 50% WI (41.67% NRI) under a pre-existing exploration agreement. Additionally, Byron owns a non-operated 53% WI (44.165% NRI) in the associated existing producing assets being the SM69 E Platform and SM58 E1 wellbore.
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