Byron Energy turns SM71 F4 well to production, drills SM71 F5

Byron Energy turned its F4 well in Gulf of Mexico South Marsh Island lease SM71 over to production. Perforations were across the entire D5 Upper Sand section and the well produced 8.3 MMcfd for about 5 days with 2,530 psi flowing tubing pressure on a restricted 25/64-in. choke. Liquid yield is low.

Because of the geometry of the trap, F4 was drilled high on structure and intersected a small gas volume above an oil leg. Electric logs indicate the upper most portion of D5 Upper Sand is gas bearing and has the highest porosity and permeability in the reservoir. Electric logs also indicate the lower portion of the D5 Upper Sand is oil bearing and has slightly less porosity than the upper portion.

The production is normal for a well with a gas-oil contact. Because the trap for the D5 Upper Sand is open to down dip water support, oil should continue to be pushed up to the SM71 F4 at the top of the structure following nearby SM72 and SM73 production analogues. Additionally, oil stained sand was found on the lower portions of the perforating guns when pulled out of the hole, which provides direct evidence of the presence of an oil leg. The company expects it will take several months before potentially bringing the oil leg up into the cleaner high permeability sands.

SM71 F5 was spudded on Mar. 8 and drilled to 3,600 ft MD. Surface casing has been run to 3583 ft MD and cemented prior to drilling the target section. Planned total depth is 8,688 ft MD (7,773 ft TVD) to test a portion of the D5 sand that may be poorly drained, if at all, by SM71 F3.

Byron is operator of SM71 and has 50% working interest and 40.625% net revenue interest. Otto Energy holds the remaining interest. Otto elected not to participate in the SM71 F4, giving Byron a 100% working interest with an 81.25% net revenue interest in the well.