American Oil and Gas Reporter - February 2017 - 38

SpecialReport: Gulf of Mexico Update
of only 6,000 feet in such a heavily explored area. "This is advanced stuff," he
characterizes, noting the field was discovered in a structurally complex area
under a salt dome with a deep updip.
"This is totally technologically driven,
using cutting edge technology. Discoveries
in the transition oil zone-both on- and
offshore-are driven by big advances in
geophysics."
The SM71 No. 1 is the second well
drilled as part of Bryon's farm-out to
Byron Energy Ltd. has hit on 83 percent of the 114 wells it has drilled in the U.S. Gulf
since 1993. In an effort to hone its inversion model, the company has acquired acoustic
shear wave data that it hopes will illuminate seismic responses in both hydrocarbon and
wet sands in the area near its wells.

well," he characterizes. "We have had a
good career following the majors."
The approach involves more than going
into heavily explored regions, however.
Smith says his company also specializes
in unlocking structurally complex areas.
"We have drilled 114 wells with a success
rate better than 83 percent since we first
started drilling in the Gulf in 1993," he
recounts. "We always use the best geophysics."
According to Smith, Byron Energy's
latest discovery encapsulates the company's strategy perfectly. The company announced in spring 2016 that its SM71
No. 1 well had reached a final total depth
of 7,477 feet in the South Marsh Island
Block 71. The discovery, on the block's
western flank, is in 130 feet of water off
the Louisiana coast.
He says the well's deeper portion encountered a 19-foot true vertical thickness
depth (TVT) hydrocarbon-bearing sand,
adding to the 132 feet TVT of net oil pay
in three other zones indicated by porosity
logs.
"We are very pleased to encounter
our fourth hydrocarbon interval in this
wellbore," Smith said in May. "This is
38 THE AMERICAN OIL & GAS REPORTER

the first time in my career I have seen
four sands trap hydrocarbons stratigraphically in one wellbore. Every predrill
target sand, both primary and secondary,
has been found to have hydrocarbons.
These stratigraphic traps were found using
high-resolution, second-generation reverse
time seismic migration, and in conjunction
with a very advanced seismic inversion
model.
"To further enhance and fine-tune our
inversion model, we acquired acoustic
shear wave data over all the objective
sands in this wellbore," he added. "These
data will be key to understanding the
seismic responses in both hydrocarbon
and wet sands in the area. The shear log
is the first shear wave data collected in
more than 320 wells on the SM71 dome,
where 117 million barrels (of oil) and
377 billion cubic feet of gas already have
been produced. We believe this information
will give Byron a significant advantage
in exploring for and exploiting other
stratigraphic traps on our blocks, and
other blocks on the dome."
Smith marvels that Bryon Energy can
find a field with an estimated ultimate
recovery of 5 million barrels at a depth

Otto Energy Ltd., another small Australian
independent, which has a 50 percent
working interest in South Marsh Island
Blocks 70 and 71. Byron Energy is the
operator.
Smith says 80 percent of its investors
are Australian, but 100 percent of its
money is spent in the Gulf of Mexico.
"The Gulf has the best geology anywhere,"
he acclaims. "Experimental geophysics
starts in the Gulf because we know the
rocks so well. America is a great place to
be an entrepreneur. In Australia, three or
four companies hold most of the land.
Here, you can go to a lease sale and if you
have the high bid, you can go to work."
Smith calls the SM71 a "multiwell
discovery," and indicates Byron Energy
has entered a purchase and construction
agreement for a six-slot tripod jacket
with decks and production equipment for
its development. Laredo Construction in
Stafford, Tx., is refurbishing the tripod,
which will include decks, a helideck, a
boat landing and production equipment,
and will provide turnkey installation of
the tripod once the work is complete and
permits are approved.
The tripod facility, which is being refurbished, modified and installed for a
gross cost of $9 million, can accommodate
six wells and will be capable of producing
as much as 5,000 bbl/d, along with asso-

American Oil and Gas Reporter - February 2017

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