Otto takes remaining interest in Gulf of Mexico lease

SM 71SM 71 platform; Source: Byron

Australia-based oil and gas company Otto Energy has acquired the remaining 50% working interest in the VR 232 license located in the U.S. Gulf of Mexico from Byron Energy.

Otto said on Thursday that the lease is subject to a 12.5% Federal Government royalty and the lease rental is $31,681 per annum. The lease expires in June 2023.

VR 232 is adjacent to South Marsh Island Block 71 (SM 71) oil field and production platform. Byron is the operator of the SM 71 and Otto is a partner with a 50% interest. The platform has capacity to produce up to 5,000 bopd from up to six wells.

Over 2 Bcf of gas and 30 Mbbls of oil have been produced from VR 232 between 1995 and 1997, according to Otto.

Otto has recently acquired a modern 3D seismic data set over the SM 71 area (including VR 232) and part of the work being done will focus on the prospectivity of VR 232 given its proximity to SM 71.

Otto Energy’s Managing Director, Matthew Allen, commented: “Otto is pleased to take its interest in VR 232 to 100% and assume operatorship of the license. Otto’s geoscience team have significant experience in the area with strong local prospect calibration.

“There is the potential for any discoveries from VR232 to be within tie-back range of our SM 71 facility where there is with capacity for up to 5,000 bopd and six wells.”


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