Byron Energy has completed the drilling of the SM- 71 #1 well in the U.S. Gulf of Mexico intersecting hydrocarbon saturated sands in three intervals.

This includes the primary D5 target, with a combined gross thickness of 150 feet/46 metres. The company started drilling the well, located at the South Marsh Island Block 71, earlier in April.

According to Otto Energy, the partner in the project, the SM- 71 #1 well has completed drilling to the final target measured depth at 6,843 feet (2,086 metres) or 6,477 feet (1,974 metres) True Vertical Depth.

Otto further reported that during drilling a number of discrete hydrocarbon bearing sands have been intersected and preliminary evaluation completed using Logging While Drilling (LWD) tools.

The following hydrocarbon indications have been observed to date:

(i) I3 Sand – a hydrocarbon saturated gross sand thickness of approximately 20 feet (6 metres);

(ii) J sand – a hydrocarbon saturated gross sand thickness of approximately 30 feet (9 metres);

(iii) D5 sand – a hydrocarbon saturated gross sand thickness of approximately 100 feet (30 metres).

Indications of oil were seen on cuttings from the D5 sand interval and all hydrocarbon bearing zones demonstrated elevated wet gas readings.

Otto stated that, based on preliminary interpretation of these results, it appeared that a significant proportion of these hydrocarbon bearing sands will result in net hydrocarbon pay, however net pay counts cannot be determined until a porosity log is run and may be determined to be less than the gross sand amounts reported.

The D5 Sand, which was the primary target of this well exhibits excellent quality, is within the range of predrill expectations, and confirms the RTM technology used to delineate the prospect. The J Sand, which was a secondary target, was found within predrill expectations and was intersected 220 feet (67 metres) up-dip of the highest productive well in the J Sand interval. The I3 Sand, which was not included in the predrill estimates, will enhance the project economics. The I3 sand interval does not appear to have been produced in offset wells on SM 71.