Oyster Bayou South marks the company’s third successive discovery in the last six months, following discoveries at Eaves and Mosquito Bay West, and validates its technical and commercial application of the capital investment framework
Otto Energy makes new discovery. (Credit: WORKSITE Ltd. on Unsplash)
Australian oil and gas explorer and producer Otto Energy has made a new discovery at its Oyster Bayou South exploration prospect in Terrebonne Parish, Louisiana, US.
The company spud its exploration well A0391 #1 on 27 June 2022 and has drilled to the target measured depth (MD) of 14,137ft or True Vertical Depth (TVD) of 13,064ft.
The well encountered proved net gas pay of 68ft true vertical thickness (TVT) Miocene pay, which is consistent with the mid-case expectation on a pre-drill basis.
The well is being completed and is scheduled for the first production during the fourth quarter of the calendar year 2022.
Otto executive chairman Mike Utsler said: “This is another excellent result for the participating partners in the Oyster Bayou South and Mosquito Bay West prospects.
“Both wells were also drilled safely and ahead of schedule, and we congratulate Castex Energy on their continued strong operating performance.
“We look forward to the first production from these discoveries over coming months, directly into current high-priced oil and gas markets and delivering a significant positive impact to Otto free cash flow.”
Oyster Bayou South marks the company’s third successive discovery in the last six months, following discoveries at Eaves and Mosquito Bay West.
Otto said that the new discovery validates its technical and commercial application of the capital investment framework to potential new opportunities.
It has discovered and developed Mosquito Bay West at a cost of $6/boe and Oyster Bayou South at $7/boe and intends to apply the same approach to additional opportunities.
The company is advancing the Mosquito Bay West discovery towards production, with the platform being installed, and topside, pipeline materials and contractors being mobilised.
Otto Energy is expected to achieve the first production in the third quarter of the calendar year 2022, and cash flow within four months of exploration spend.
Apart from the discoveries, the company is set to enhance its production base through the recompletion of the SM 71 F2 well into the J1 sand and the GC 21 Bulleit well into the DTR-10 sand.