According to Byron Energy, the SM71 F4 well is producing currently at a rate of 8.3 million cubic of gas per day


The SM71 F4 well in the US Gulf of Mexico has started production. (Credit: Pixabay/gloriaurban4)

Byron Energy has commenced production from the South Marsh Island 71 F4 Well (SM71 F4 well) in the US Gulf of Mexico.

The Australian oil and gas company completed drilling of the SM71 F4 well earlier this month and has now turned it into a production well. The initial flow rates from D5 Upper Sand are said to be in line with the expectations of the company based on the analysis of the electric logs from the well.

According to Byron Energy, the SM71 F4 well is producing currently at a rate of 8.3 million cubic of gas per day (mmcfgpd). The production has a very low liquid yield and a flowing tubing pressure of 2,530 psi on a restricted 25/64 inch choke, said the company.

The SM71 F4 well had reached a final total depth of 8,130 feet measured depth and had encountered 91ft of net hydrocarbon in the primary target D5 Upper Sand.

Byron Energy said that due to the geometry of the trap, the SM71 F4 well was drilled very high on structure and had encountered a small gas volume above an oil leg.

As per the electric logs, the upper most portion of the D5 Upper sand indicates gas bearing and is said to have the highest porosity and permeability in the reservoir.

The lower portion of the D5 Upper Sand have been indicated by the electric logs to be oil bearing and having slightly less porosity compared to the upper portion of the reservoir.

Byron Energy expects to take several months before it can possibly get the oil leg up into the cleaner high permeability sands. The company, through its fully-owned subsidiary Byron Energy is the operator of SM71. It also has a 50% working interest and a 40.625% net revenue interest in SM71, where it is partnered by Otto Energy, which has the remaining interest.

Byron Energy has full ownership of the SM71 F4 well

Otto Energy chose not to take part in the SM71 F4 well, thereby giving Byron Energy a 100% working interest with an 81.25% net revenue interest in the well.

Byron Energy CEO Maynard Smith said: “Having carefully reviewed the performance of similar wells in the area, we are comfortable that the initial flow rates of the SM71 F4 are consistent with other wells that logged both gas and oil in this section.

“It’s interesting to note that the F4 gas production, at today’s oil and gas prices, is economically equivalent to about 500 bopd. Because this well is important to Byron we will continue to update the market regularly on the production performance of this well.”