SOUTH MARSH ISLAND BLOCK 71 ON STREAM

Byron Energy announced that production has commenced at its flagship South Marsh Island Block 71 (SM71) oil development, in the shallow water of the Gulf of Mexico. The commencement of maiden production has elevated the Company to producer status. As previously reported over the past several months, Byron Energy Inc., a wholly owned subsidiary of the Company has been moving to initiate oil production from Company operated wells drilled on SM71 in the Gulf of Mexico. Three wells have been drilled, the SM71 F1and F2 wells are completed and producing from the D5 Sand and B65 Sand respectively. Operations to complete the SM71 F3 in the D5 Sand are currently in progress. At approximately 2 PM US Central Daylight Time (“USCDT”) on 23 March 2018, after final regulatory inspections were concluded, the Byron Energy operated SM71 F1 well was opened to the production system on the SM71 F platform. After all flow lines and production vessels were filled with fluid and operating pressures were established, the choke was slowly opened and the SM71 F1 well went into production. Within 5 hours, the SM71 F1 well was producing at rates approaching 2,000 bopd with little or no water. The well has been on continuous production ever since at a controlled rate. Last test data at 3 PM USCDT 25 March 2018 was 2,118 bopd of 42 degree API oil, approximately 1 mmcfpd and less than 1% water cut with 1500 psi flowing tubing pressure on a 22/64ths choke. Any water recovered is completion fluid and is not from the D5 Sand reservoir.
Neither the SM71 F1 nor the SM71 F2 well is currently producing at its maximum capacity due to facility commissioning. (Source and image: Byron Energy)