Byron Energy Limited provided the following updates on the status of the Company's South Marsh Island 58 G3 and G5 (G3 and G5) drilling and completion program, and oil and gas production from its South Marsh Island 71 F and 58 G (SM71 F and SM58 G) platforms. South Marsh Island 58 G3/G5Completion Progress: Completion operations on the SM58 G3 well are nearly finished. As announced on 16 May 22, the G3 logged 27 feet True Vertical Thickness (TVT) oil pay in the primary J Sand and 31 feet TVT oil pay
in the secondary K4/B65 Sand targets. Frac pack sand control measures have been pumped across
both zones, 2 7/8" tubing has been run, and final topside hook-up operations are underway. Both
sand control jobs were completed successfully indicating good permeability and consistency with
predrill estimates.
The J Sand will be the first sand produced in the G3 with the K4/B65 Sand placed behind a sliding
sleeve for future production. Based on historical J Sand production data from the area, daily oil
production rates of between 500 to 1,000 barrels of oil per day (bopd) are expected from the G3.
The Company expects the drilling rig to finish operations on the G3 and be off location by the end of
the week with production expected to begin shortly thereafter. Byron will provide an update on the
G3 J Sand production once the well has stabilized.
The SM58 G5 well was completed in the L2 Sand and production began on 13 July 22. Despite good
production rates, the L2 Sand is showing signs of a strong depletion drive mechanism with declining
flowing tubing pressure. As discussed in Byron's ASX release on 7 July 22, the L2 Sand indicated either
poor permeability or a limited areal extent when frac pack sand control measures were puped. It
should be noted that the L2 Sand was not a pre-drill target in the G5 well as the L2 at the G5 well
intersection location is below the seismic resolution of the data. However, given the sand quality
displayed on the logs and the historically high rate L2 Sand zone, it was decided to complete the L2
Sand for production to test the extent of the reservoir. The L2 Sand in the G5 has demonstrated that
it can produce oil at high rates. The G5 daily oil rate, currently at 500 bopd, initially exceeded 800
bopd which is consistent with nearby L2 Sand completions. However, the decline in pressure to date
indicates a limited area that is apparently disconnected from other down dip mapped L2 Sand
opportunities in the vicinity.
The primary target of the G5 well was the N2 Sand which logged 36 feet of TVT oil pay as announced
on 7 June 22. The G5 was drilled in an attic position to a 3.2 mmbo pool of N2 Sand production. The
G5 will be recompleted in the N2 Sand with through tubing gravel pack techniques once the L2Sand
is fully produced. This work can be achieved without the use of a rig, utilizing more cost-effective
coil tubing equipment placed on the SM58 G platform. Byron's engineering team is currently
finalizing the completion design and procedure which will allow for a quick change to the N2 Sand
once the L2 Sand is fully depleted. Byron will update the market when this work takes place. Given
the current hole conditions across the N2 Sand, the completion methods available and associated
mechanical constraints, future production rates are expected to be limited to less than 350 bopd with
a corresponding gas rate of 3 to 5 million cubic feet of gas per day (mmcfgpd). If the well successfully
produces at these lower rates for a period of time the Company will explore other options to
accelerate production from the N2. South Marsh Island Project Production Update: Production levels from the Byron operated SM71 F and SM58 G platforms have remained steady. As
of 25 July 22, combined well test data from the SM71 F platform stands at 2,240 bopd, 1.4 mmcfgpd
and 27 barrels of water per day (bwpd). At the SM58 G Platform combined well test data as of 25
July 22 stands at 1,353 bopd, 5.6 mmcfgpd and 271 bwpd. At SM58, 527 bopd is coming from the
SM58 G5 well which was discussed in detail above. Since production from the Byron operated SM71 F Platform began in March of 2018, a total of 4.1
mmbo and 5.1 bcf of gas has been produced, making SM71 the number two ranked producing block
on the Gulf of Mexico Shelf over that period. The SM71 F3 (F3) well ranks number one and the SM71
F1 (F1) well ranks number three among active producing oil wells on the Shelf since March 2018.
Both wells produce from the D5 Sand which has now produced over 4 mmbo.
SM71 F2/F4 Recompletion Update: Due to continued delays of the liftboat to be used for these operations, a replacement liftboat has
been secured and will be available in mid-August. Byron will mobilize crews and equipment to the
SM71 F platform once the liftboat is available and undertake the through tubing recompletions to
the J1 Sand in both wells as outlined in the Company's' March quarterly Activities and Cashflow
Report, released to the ASX on 28 April 2022.