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Byron Energy mobilises drill rig at first drill ready Cutthroat prospect

The company will bear 100% of the cost of the SM58 011 well and holds the operator rights, titles and interest in and to the SM58 lease block to a depth of 13,636 feet subsea.

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The company’s blocks are in shallow waters of the outer continental shelf and transition zone of the Gulf of Mexico, offshore Louisiana

Byron Energy Ltd (ASX:BYE) has mobilised tugboats to meet the Enterprise 263 drilling rig and tow it to an open water location on the company’s SM58 lease at the South Marsh Island 58 011 well.

Once on location, the rig will prepare to spud the SM58 011 well and test Byron’s Cutthroat prospect.

Towing operations are expected to begin on August 1, 2019, and will take about 24 hours.

“First drill ready prospect”

Byron chief executive officer Maynard Smith said the company was pleased to begin the first well on its acquired SM58 lease.

Smith said: “Cutthroat is our first drill ready prospect and offers a large reward with moderate risk."

"If the SM58 011 well is successful, the recent purchase of a production platform will result in substantial capital and time savings to first production, as well as accelerate future drilling.”

The proposed well will target the highly productive normally pressured O sands which account for about half of the 35 million barrels of oil produced to a depth of 11,466 feet measured depth and is expected to take about one month to drill.

7.8 million barrels of oil

The Cutthroat prospect lies up-dip to the Shell SM58 9ST1 well that logged over 500 feet of high quality, wet O sands in 1988.

The company’s prospective resources for Cutthroat are calculated at 7.8 million barrels of oil and 18 billion cubic feet of gas on a gross basis.

Cutthroat is similar in trapping style to the productive SM71 F1 and F3 wells drilled by the company in 2016.

The prospect demonstrates seismic attributes consistent with hydrocarbons in the field.

Quick facts: Byron Energy Ltd

Price: 0.17 AUD

ASX:BYE
Market: ASX
Market Cap: $176.85 m
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