Byron Energy announces that the SM58 011 well has been drilled to a depth of 10,875 feet MD, equivalent to 9.832 feet TVD, and has encountered hydrocarbons in the target O Sand section. At the current time,the well is drillingahead prior to acquiring further electrical logs.
The target O Sand was encountered at a depth of 10,435 feet MD (9,340 TVD) in line withpredrill expectations. Logging While Drilling ('LWD') Gamma Ray and Resistivity tools and Mudlog shows indicate the presence of hydrocarbons beginning at the top of the O Sand to the current drill depth of 10,875 feet MD. Preliminary pay counts based on LWD logs indicate a total of 300 feet MD (300 feet True Vertical Thickness) gross thickness of hydrocarbon with no evidence of water seen to this depth. Based on LWD logs, the O Sand appears to be a very high qualityand well developed reservoir.
Upon reaching total depth of 11,466 feet MD (10,418 feet TVD), the Company will utilize Measurement After Drill ('MADPASS') logging tools to acquire a quad combo suite of electrical logs (Gamma, Resistivity, Sonic, Neutron Porosity, and Density) across the O Sand interval which will aide in identifying the exact hydrocarbon type and liquids content.
As previously announced, the SM58 011 well is drilling Byron’s Cutthroat Prospect, targeting the highly productive normally pressured O Sands which produced 16.5 million barrels of oil and 85 billion cubic feet of gas on SM58 since production began in 1964. The SM58 011 well is operated by Byron and will be drilled to a plan depth of 11,466 feet Measured Depth ('MD') (10,418 feet true vertical depth).
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.
Byron will continue to issue progress reports on the SM58 011 well as drilling and logging progresses.
Bryon’s CEO, Maynard Smith commented:
"We are very enthusedand excitedby what we have seen thus far in the SM58011 well and are confident that this result will lead to a commercial development on SM58. This result vindicates the high effort that was put into the seismic processing which was used to define and drill the Cutthroat Prospect. I would like to thank the Byron staff and our contractors who have worked so diligently on this project to achieve this result."