Oh no @qldfrog as I reduced my position in CVN this morning (after Apus-1 drilling update) and bought more BYE instead.When you roll a dice in the morning between BYE and CVN..and put an order in CVN which promptly collapsed today?
Oil pumped higher overnight to US $108BYE Quarterly report:
- NET REVENUE FOR MARCH QUARTER $14.7 MILLION VERSUS $13.4 MILLION IN DEC QUARTER
- BYRON'S SHARE OF OIL PRODUCTION FOR MARCH QUARTER WAS 143,836 BARRELS OF OIL
- BYRON'S SHARE OF GAS PRODUCTION FOR MARCH QUARTER WAS 509,877 MMBTU VERSUS 668,010 MMBTU IN DEC QUARTER
Awaiting the moment of truth due any day now (on pending oil drill results).. will be a defining moment in shaping BYE's future potential (finger's crossed).Oil price held up well overnight by the prospect of a European Union ban on Russian crude imports. Brent crude settled +0.7% higher at US$110.90 a barrel.
BYE resumed it's "next leg up" so to speak @ 0.18c +12.5%We should receive potential exciting news about G5 drilling within the next 6-9 day's imo can't wait
*Recent drilling success has roughly added US $100K per day "extra cash flow" earned!
Cheers tela
BYE @ 0.19c +11.76% on 3.4M+ volume traded already!SM58 G5 Well Logs Hydrocarbon Pay and Preparing to Run Casing
• 81 feet of True Vertical Thickness pay has been logged in the SM58 G5 well
o 11 feet of TVT pay in the secondary I2 Sand
o 23 feet of TVT pay in the secondary K4/B65 Sand
o 47 feet of TVT pay in the secondary L2 Sand
• The primary N2 Sand has not been reached yet
• Following a failure of the transmission for the rig’s top drive, current operations are
preparing to run 7” casing to preserve the pay sands for completion
• Drilling operations to evaluate the N2 Sand will begin once casing is run and rig
repairs are complete - 600 feet of drilling remain to reach total depth
• First production from the G3 and G5 wells is expected in July 2022
Byron Energy Limited (Byron or the Company) (ASX: BYE) is pleased to provide the following update
on the Company’s 100% owned and operated South Marsh Island 58 G3 (G3) and South Marsh Island
58 G5 (G5) drilling program at its South Marsh Island 58 G Platform.
SM58 G5 Results to Date
The Enterprise Offshore Drilling (EOD) 264 jack-up rig arrived at Byron’s 100% owned South Marsh
Island 58 G Platform at 0830 hours on 18 April 2022 (USCDT) to drill the G3 and G5 wells. Byron is
batch drilling these wells to increase efficiency and cost savings. Since arriving on location, the G3
well was drilled to total depth on 13 May2022 and production casing was run across the productive J
and K4 sands.
As of 1800 hours on 24 May 22 (USCDT), the G5 has been drilled to a depth of 9,650 feet Measured
Depth (MD)/7,672 feet True Vertical Depth (TVD). At that depth, during a planned, routine hole
cleaning operation, the top drive transmission on the EOD 264 suffered a complete failure. Because
the drill pipe cannot be rotated without a top drive, the drill string and Log While Drilling (LWD) tools
have been pulled to surface and the decision to run 7” production casing has been made to preserve
the hydrocarbon sands logged to date. Currently, operations are focussed on running and cementing
casing before the top drive is replaced which can take 3 - 4 days. Once the top drive has been replaced,
Byron will drill ahead to test the primary N2 Sand. The G5 is expected to reach a final total depth of
10,240 feet MD/ 8,196 feet TVD.
The G5 well, drilling the Smoked Trout prospect, has penetrated two of the three pre-drill objectives
and logged hydrocarbon (most likely oil based on mudlog and LWD responses) in one of those
objectives, the K4 Sand. Another secondary target, the J Sand, was found to be pinched-out with no
sand in the G5 well. However, hydrocarbons were logged in two other sands, the I2 Sand (most likely
gas), and more importantly, the L2 Sand (most likely oil).
The secondary K4 Sand logged 23 feet TVT net pay. Pre-drill gross 1P reserves of 275,000 barrels of
oil (mbo) (net 230 mmbo) were provided by Byron’s third-party reserve estimator, Collarini Associates
(Collarini) as disclosed in the ASX release of 1 February 2022 for the K4 Sand. Collarini predicted 30
feet TVT net pay at the G5 location as a basis for these reserves. The G5 logged very clean K4 sand
which is connected to oil downdip as an attic accumulation to previous K4 Sand production. K4 Sand
production rates are estimated to fall in the range of 400 to 500 barrels of oil per day (bopd) depending
on reservoir drawdown across the perforations. Long term stability of the initial rate will depend on
the ultimate strength of the aquifer support. The Company will complete the K4 Sand after producing
the downhole L2 and N2 sands using modern frac pack sand control techniques.
The G5 also logged 47 feet TVT hydrocarbon (most likely oil) in the L2 Sand. Correlation of this sand
with older wells and Byron’s 3D seismic data indicates the L2 Sand in the G5 is part of the Steelhead
South prospect. As previously mapped, the L2 Sand was not expected to be well developed in the G5,
but in fact, the L2 Sand is a clean, high-quality sand. The G5 L2 Sand penetration is part of a large
accumulation of oil that is further proved by two other wells down-dip, but never produced.
Collarini ascribed 291 mbo to the L2 Sand in the Steelhead South prospect and used 15 feet TVT of oil
at that location for that assessment. This result in the G5 has substantially increased both the area
and volume of the Steelhead South L2 Sand prospect and is a very positive outcome in the G5 well.
The oil logged in the L2 Sand was the driving factor in deciding to run casing prior to replacing the top
drive. Historical production rates from the L2 Sand in the area range from 700 to 1000 bopd,
depending on reservoir drawdown across the perforations. Long term stability of the initial rate will
depend on the ultimate strength of the aquifer support. The Company will complete the L2 Sand using
modern frac pack sand control techniques.
The thin pay in the I2 Sand will be a future through tubing completion in the G5 well. The I2 Sand is
expected to be a modest gas producer many years in the future and lies updip to old I2 Sand
production.
The G3 and G5 well results will be reflected in the Company’s June 30, 2022, reserves report, expected
to be released in late August/early September 2022.
To put the results of the G5 thus far in the regional context of the South Marsh Island 73 Field area, it
is interesting to look at historical averages for both the K4 and L2 Sands. The K4/B65 sand has
produced 12.3 mmbo from 19 wells in the field with an average TVT of 34 feet. The average K4/B65
Sand completion has produced 647 mbo with a range of 152 mbo to 1,700 mbo. The L2 Sand (also
called the C10 Sand) has produced a total of 4.5 mmbo from 17 wells in the field with an average TVT
net pay of 25 feet. The average L2 Sand completion has produced 267 mbo with a range of 17 mbo to
689 mbo.
The presence of the L2 Sand in the G5 well could lead to an acceleration well if the primary N2 Sand
is present as expected. Production from the N2 Sand would push the uphole recompletion of the L2
Sand out several years and with current commodity prices, it may make economic sense to bring the
L2 Sand production forward.
Go-Forward Plans
Once casing has been run and cemented, EOD will completely replace the top drive, an operation that
may take 3 or 4 days. During that time, Byron will prepare to drill out of casing and evaluate the
primary objective of the Smoked Trout prospect, the N2 Sand. Only 600 feet of drilling remains to
reach total depth. If successful, a 5” liner will be run to total depth to allow production from the N2
Sand if it is hydrocarbon bearing.
Concurrently, Byron’s completion engineers are finishing up completion designs for the G3 and the G5
wells. Completion operations will begin as soon as the G5 drilling operations are over. First production
from both wells is expected in July 2022 after some topside work is finished on the SM58 platform and
the wells are tied into the production system.
Further operational updates will be provided as the project progresses.
SM71 F4 and F2 Recompletion
Byron has been informed by the owner of the lift boat needed to recomplete the South Marsh Island
Block 71 F4 and F2 wells that the liftboat has been delayed until late June due to an expanded program
by the current operator. Further details on the SM71 F2 and F4 recompletions can be found in the
Company’s March Quarterly Activities and Cashflow Report, released to the ASX on 28 April 2022.
Byron's CEO Maynard Smith said:
"The presence of the L2 Sand in the G5 well is very good news. Steelhead South was one of our top oil
prospects and while we hoped the L2 might be present in the G5, we did not expect the quality and
thickness of the L2 oil that was logged. Additionally, the K4 Sand is better developed in the G5 than
anticipated and will provide a straw into the downdip K4 Sand accumulation in the future.
The top drive failure was very disappointing as the EOD 264 had been performing well. We have had
virtually no downtime caused by the rig during this program and to be so close to total depth and have
this happen is frustrating. But running casing here preserves the L2 and K4 Sands and allows us to
reach the N2 Sand with only a modest increase in cost. Our engineering team and vendors have done
a tremendous job adjusting the program to get ready to run the casing.
The current two well program at SM58 can already be considered a success and we look forward to
the increased cashflow to Byron once these wells are on line in July.”
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