Oil and gas junior Byron Energy (ASX: BYE) has revealed several new low-risk development opportunities and prospects at one of its offshore joint venture projects in the US Gulf of Mexico.
The company today announced it has received the final version of reverse time migration (RTM) data from a seismic reprocessing program at the South Marshall Island Block 71 (SM71), which it operates in a 50/50 joint venture with Otto Energy (ASX: OEL).
Using this data, Byron said it has already catalogued numerous prospects and leads, which it will continue to evaluate once the final reprocessing products are delivered.
Future drilling plans within the project area will be based on the overall ranking of those prospects, the company stated.
Seismic reprocessing program
In May 2018, Byron engaged Schlumberger subsidiary WesternGeco to add additional licensed 3D seismic data to its previously licenced data inventory, as well as perform new seismic data processing over the SM71 project area.
The data covers 445sq km encompassing 22 South Marshall Island outer-continental shelf lease blocks and includes 523 wells, which have produced more than 138 million barrels of oil and 2.2 trillion cubic feet of gas.
The new, higher frequency RTM data was delivered to Byron in late December. The remaining reprocessed data from the seismic program is expected to be delivered in February.
In addition, Byron has licenced WesternGeco’s Petrel software platform in order to take full advantage of its vector imaging partitioning (VIP) and RTM processing.
“Byron has always believed in gaining every technical advantage possible and licensing the Petrel software is another example of this strategy, and although the transition to Petrel is an arduous one, Byron believes it will put us one more step ahead of other Gulf of Mexico players,” the company stated.
Byron chief executive officer Maynard Smith said the company was already seeing the benefits of this new, improved and expanded database.
“Being able to tie every well in such a highly productive area of the Gulf of Mexico with accurately processed, high quality seismic data and take advantage of VIP technology will be fundamental to the growth of Byron,” he said.
According to the company, this ability will allow the company to pursue projects based on analogue producing wells, understand dry holes and trapping styles and then focus its efforts on key stratigraphic horizons across the area.
“Interpretation of this data will be ongoing for many years and will provide the foundation for Byron’s continued strategy of using the latest technology to de-risk our portfolio of opportunities and increase our chance of success,” Mr Smith added.
Oil production hits the million mark
Today’s news follows the company’s announcement two days ago that the SM71 facility had produced and sold its 1 millionth barrel of oil (gross) since initial production started in March 2018.
The facility has also produced more than 1.3 billion cubic feet of gas, which on a revenue basis is approximately equivalent to an additional 70,000bbls of oil.
Byron also announced that the initial capital investment for the construction of the platform, the drilling and completion of the three wells and all seismic acquisition and federal leasing expenses have now been recovered.
Mr Smith said the SM71 discovery “proves, beyond any doubt, that very good production and substantial reserves, can still be found in these old fields by applying absolute state-of-the-art geophysical data”.
“We will continue to use this strategy over structurally complex domes in the Gulf of Mexico and very much look forward to our next discovery,” he said.
Following today’s announcement, Byron shares climbed up 10.64% to reach $0.26 by close of trade.