South Marsh Island 71 (SM 71)
Ownership: 50.00% with Byron Energy Inc (50% and Operator)
Location: Offshore Gulf of Mexico
Area: 12.16 km2
Otto owns a 50% Working Interest (“WI”) and a 40.625% Net Revenue Interest (“NRI”) in the South Marsh Island block 71 (“SM 71”), with Byron Energy Limited (“Byron”) the operator, holding an equivalent WI and NRI. Water depth in the area is approximately 137 feet. Production commenced from two wells (F1 and F2) in March 2018 and the F3 well on 6 April 2018.
All three wells were returned to production on 22 April 2018 at a combined rate of 4,650 bopd and 3,200 mcfgpd which is over 90% of the platform’s throughput capacity. These rates are considered ideal for the current operating conditions and uptime is expected to be 96%. This rate of production also optimises drawdown on each of the wells and should maximise the ultimate long term recovery from the reservoirs.
Based on these rates, Otto’s daily sales would be approximately 2,325 bopd and 1,600 mcfgpd on a 50% working interest basis (1,890 bopd and 1,300 mcfgpd on a 40.63% NRI basis (after Federal royalties) of 18.75%).