Australian company Byron Energy will go it alone with the drilling of the next well on South Marsh Island Block 71 (SM71) in the US Gulf of Mexico.
Byron revealed Wednesday that compatriot Otto Energy had elected not to participate in the drilling of the SM71 F4 well, a D5 sand extension well designated the Sausage project.
Byron confirmed that it would still drill the well without its 50% partner Otto, taking on 100% of the cost of the well which is scheduled to spud in January next year using the jack-up Enterprise 263.
“The SM71 F4 well is an attractive target from both a reserve and risk standpoint and we look forward to drilling it early next year. Our RTM (reverse time migration) seismic data does a very good job of delineating the Sausage prospect and if successful, will increase D5 Sand reserves,” Byron chief executive Maynard V Smith said.
“We are disappointed that Otto will not be a part of this well, but this is the right time to drill and bring on new production in the life cycle of the SM71 platform and project.”
The well will target an area of stratigraphically isolated D5 sand which Byron believes, based or reprocessed seismic data, will not be drained by the existing SM71 F1 or F3 wells.
Byron estimates the well to hold prospective resources totalling 1.26 million barrels of oil and 750 million cubic feet of gas.
The drilling of the well will follow a planned compressor upgrade at the SM 71 platform which is set to take place in late November or early December.
