Ownership: Otto Energy 40%. Earning via staged farm-in with Byron Energy Limited (Operator)
Location: Offshore Gulf of Mexico
Area: 11.04 km2
The Bivouac Peak leases cover 2,821 acres of highly prospective acreage in the transitional zone inshore southern Louisiana. The Operator has identified multiple prospects at both the Middle and Lower Miocene levels demonstrating stacked amplitude and AVO (amplitude versus offset) support. Follow-up drilling options have been identified at the Lower Miocene level that could increase the scale of the overall opportunity.
On 6 July 2018 Otto elected to participate in the initial test well, Weiss Adler et al No. 1, on the Bivouac Peak East prospect which is expected to commence drilling in mid-August 2018. The AFE for the 18,294 ft (TVD) well is US$10.4 million (100% dry hole cost). Otto will earn a 40% working interest by paying 53.33% of the costs of the well to reach the earning depth or up to a cap of US$5.33 million (US$10 million x 53.33%), whichever occurs first, after which Otto will revert back to paying 40% of all future costs.
An independent resource estimate for Bivouac Peak was prepared by Collarini Associates, which assigned Prospective Resources for the leases as set out in the table below.
Significant production exists in the adjacent Miocene sequence at the Little Bay field (greater than 45 Bcf gas and 5 MMbbl condensate) and the Atchafalaya Bay field (greater than 100 Bcf gas and 0.6 MMbbl condensate).
With nearby production infrastructure already in place, any successful well at Bivouac Peak would be capable of being brought into production within 8-10 months of discovery at a development cost in the range of US$9-11 million (100%).
Should a commercial discovery be made at Bivouac Peak East additional potential at the Deep prospect will be followed up in due course.
The Weiss Adler et al No. 1 well is expected to commence in the second half of August 2018 and take 75 days to reach total depth.