Rig: Spartan 202

Byron confirms discovery at SM6 #1 well

Byron Energy Limited (Byron) is pleased to announce that electric logs have been run to a depth of 7,600 feet (2,316 metres) measured depth (MD) and 7,508 feet (2,288 metres) true vertical depth (TVD) in the Byron Energy SM6 #1 BP02 (SM 6 #1 BP02) well. These logs indicate a total combined net pay thickness of 70 feet (21.3 metres) MD and 68 feet (20.7 metres) TVD in two lobes of the F 40 Sand over a gross interval from 7,430 feet to 7,550 feet (2,265 to 2,301 metres) MD and 7,351 feet to 7,462 feet (2,241 to 2,274 metres) TVD. GC Tracer data indicates that the probable hydrocarbon in these zones is a light condensate. The F 40 Sand encountered in the SM 6 #1 BP02 well is approximately 560 feet (171 metres) up dip from the nearest F 40 Sand intersection. This result is consistent with the Anisotropic Reverse Time Migration (ARTM) pre-drill seismic structural mapping. Current operation at 5 pm on 15 July 2014 (USA Central time) is to spot a heavy pill on bottom before pulling out the electric log tools prior to running of 5 ½ inch intermediate casing. After the 5½ inch casing has been run and cemented Byron plans to drill ahead to the G 20 Sand, the primary reservoir objective. The SM6 #1 BP02 well is located in South Marsh Island Block 6 (“SM 6”), offshore Louisiana, 216 km southwest of New Orleans, Louisiana, USA, in a water depth of approximately 65 feet (20 metres). Byron, through a wholly owned subsidiary Byron Energy Inc. (the operator), has a 100% working interest and an 81.25% net revenue interest in SM 6.

Byron Energy nears completion of SM6 #1 well in USA

Byron Energy Limited (Byron) advises that at 4.00 pm on 14th July 2014 (USA Central time) the Byron Energy SM6 #1 BP02 well (“SM6 #1 BP02”) was preparing to run electric logs prior to running and cementing 5½ inch intermediate casing at 7,861 feet (2,396 metres) measured depth and 7,752 feet (2,363 metres) true vertical depth. Several hydrocarbon shows were encountered before reaching intermediate casing point depth. The commercial significance of these shows will be evaluated after the electric logs are run. The primary target, the G 20 Sand, is still several hundred feet below the current depth of the intermediate casing point. After the 5½ inch casing has been run and cemented Byron plans to drill ahead to the G 20 Sand. The SM6 #1 BP02 well is located in South Marsh Island Block 6 (“SM 6”), offshore Louisiana, 216 km southwest of New Orleans, Louisiana, USA, in a water depth of approximately 65 feet (20 metres). Byron, through a wholly owned subsidiary Byron Energy Inc. (the operator), has a 100% working interest and an 81.25% net revenue interest in SM 6. Drilling operations were carried out by Spartan Offshore Drilling’s ‘Spartan 202’ jackup rig.

Byron prepares to sidetrack SM6#1 well

As announced on 12th June 2014, the drill pipe in the SM 6 #1 well became stuck at a measured depth of 7,738 feet (2,359 metres). This depth is approximately 600 feet above the primary target reservoir, the G20 Sand. Since 12 June 2014, Byron attempted to free the drill pipe as required by the regulatory authorities. These attempts were unsuccessful. Byron subsequently requested and obtained regulatory approval to sever the drill pipe, run a cement plug at approximately 7,229 feet (2,203 metres) measured depth, 7,170 feet true vertical depth (2,185 metres), and then sidetrack the well off the cement plug from approximately 6,740 feet (2,054 metres) measured depth. Byron plans to drill the well-bore along a path parallel to the originally planned well-bore to a total measured depth of 9,571 feet (9,320 feet true vertical depth). The direct and indirect costs of attempts to free the drill pipe have added substantially to the cumulative cost of the well to date. This combined with the cost of the proposed sidetrack requires additional funding which is provided by the Placement. Current operations, at approximately 4.00 pm (USA Central Time) on 19th June, 2014 are picking up bottom hole assembly in preparation for drilling of the sidetrack well. SM 6 #1 is located in South Marsh Island Block 6 (“SM 6”), in a water depth of 65 feet (20 metres), 216 kilometres south-west of New Orleans, Louisiana, USA. Byron, through its wholly owned subsidiary Byron Energy Inc. (the operator), has a 100% working interest and a 81.25% net revenue interest in SM 6.

'Spartan 202' reaches total depth at SM6#1 well

Byron Energy Limited (Byron) advises that as of 6 am (USA Central Time) on Monday, 9th June, 2014 the SM 6 #1 (“SM 6 #1”) well has reached a measured depth of 6,813 feet (2,077 metres) with true vertical depth at 6,793 feet (2,070 metres). Current operations at SM 6 #1 well are tripping for a new bit and bottom-hole assembly. Drilling operations are expected to recommence Tuesday morning, USA Central Time from the ‘Spartan 202’ jackup. The wellbore is still several hundred feet above the first target sand and is in good condition. In addition, Byron has had its fourth rig inspection by the Bureau of Safety and Environmental Enforcement (“BSEE”) inspectors, with no incidents of non-compliance issued. The Company was also subjected to an official unannounced oil spill drill by BSEE, the US Coast Guard and the State of Louisiana Oil Spill Coordinator. This oil spill drill lasted approximately 7 hours, during which time Bryon personnel were required to go through the acts of locating boats, oil spill skimming equipment and other items related to the response to a simulated oil spill event.

Byron releases SM6#1 drilling update

Byron Energy Limited (Byron) advises that the Byron Energy SM 6 #1 (“SM 6 #1”) well located in South Marsh Island Block 6 (“SM 6”) has set and tested 8 5/8” surface casing at a depth of 4,463 feet measured depth. Upon testing, a casing shoe test of 14 pounds per gallon was achieved, which exceeded expectations. On Friday, 6 June 2014 at approximately 12.15 am (USA Central Time) the SM 6 #1 well is drilling ahead in the 7-7/8” hole size at 4,800 feet (1,463 metres) measured depth (4,795 feet true vertical depth). To date, drilling of SM 6 #1 well is 3-4 days behind the planned days-depth curve, primarily due to mechanical issues. Despite this, the wellbore is in very good condition. In addition, the rig and drilling operation has been inspected by the Bureau of Safety and Environmental Enforcement personnel on three separate occasions without Byron receiving any citations of incidents or non-compliance. Byron, through its wholly owned subsidiary Byron Energy Inc. (the operator), has a 100% working interest and an 81.25% net revenue interest in SM 6. SM 6 is located offshore Louisiana, 216 km southwest of New Orleans, Louisiana, USA.

'Spartan 202' spuds SM6#1 well

Byron Energy Limited (Byron) advises that the contracted jack-up drilling rig, ‘Spartan Rig 202’, spudded the SM 6 #1 (“SM 6 #1”) well located in South Marsh Island Block 6 (“SM 6”) on Saturday, 24th May 2014, at approximately 3.15 PM (USA Central Time). Current operations at the SM 6 #1 well are preparing to run 10 ¾” conductor casing at 1,535 feet (468 metres) measured depth (1,531 feet true vertical depth). Byron, through its wholly owned subsidiary Byron Energy Inc. (the operator), has a 100% working interest and a 81.25% net revenue interest in SM 6. SM 6 is located offshore Louisiana, 216 km southwest of New Orleans, Louisiana, USA. Byron will provide further progress drilling reports as material information becomes available.

Spartan 202 arrives at drilling location

Byron Energy Limited (Byron) advises that the contracted jack-up drilling rig, ‘Spartan Rig 202’, arrived on the Byron Energy SM6 #1 (“SM6 #1”) well location in the South Marsh Island Block 6 (“SMI 6”) on Saturday morning, 17 May 2014 (USA Central Time), and is currently jacking-up. The well is expected to spud within the next 2-3 days, weather permitting. SM6 #1 will be drilled in water depth of approximately 65 feet (20 metres), with a planned total measured depth of approximately 9,560 feet (2,915 metres) and total vertical depth of 9,320 feet (2,842 metres). It is anticipated that the well will take approximately 28 days to drill and evaluate. The well will evaluate the South West Prospect in the south west corner of a major salt dome on SMI 6, located offshore Louisiana, 216 km southwest of New Orleans, Louisiana, USA. The SM6 #1 well will be drilled to only test the un-pressured (shallow) section of the South West Prospect. Byron, through its wholly owned subsidiary Byron Energy Inc. (the operator), has a 100% working interest and a 81.25% net revenue interest in SMI 6.

'Spartan 202' mobilisation held up by weather

Byron Energy Limited (Byron) advises that mobilisation of the contracted jack-up drilling rig, ‘Spartan Rig 202’, to the Byron Energy SM6 #1 well location (“SM6 #1”) in the South Marsh Island Block 6 (“SMI 6”) has been delayed due to high sea conditions which have prevented the rig from safely leaving its current location. A weather window of 36-48 hours is required to tow the rig from its present location to SMI 6. Current forecasts indicate more favourable weather conditions later this week. Byron's day rate contract with Spartan begins when the rig is under tow. The well will spud as soon as mobilisation of the rig is completed. SM6 #1 will be drilled in water depth of approximately 65 feet (20 metres), with a planned total measured depth of approximately 9,560 feet (2,915 metres) and total vertical depth of 9,320 feet (2,842 metres). It is anticipated that the well will take approximately 28 days to drill and evaluate. The well will evaluate the South West Prospect in the south west corner of a major salt dome on SMI 6, located offshore Louisiana, 216 km southwest of New Orleans, Louisiana, USA. The SM6 #1 well will be drilled to only test the un-pressured (shallow) section of the South West Prospect. Byron, through its wholly owned subsidiary Byron Energy Inc. (the operator), has a 100% working interest and a 81.25% net revenue interest in SMI 6.

'Spartan 202' ready to mobilise to new drilling location

Byron Energy Limited (Byron) advises that the contracted jack-up drilling rig, ‘Spartan Rig 202’, is expected to commence mobilisation to the Byron Energy SM6 #1 well location (“SM6 #1”) in the South Marsh Island Block 6 (“SMI 6”) on Thursday, May 8 (USA Central Time), weather permitting. SMI 6 is located offshore Louisiana, 216 km southwest of New Orleans, Louisiana, USA. The well is expected to spud early in the week commencing 12 May 2014, assuming mobilisation proceeds as planned. It is anticipated that the well will take approximately 28 days to drill and evaluate. SM6 #1 will be drilled in water depth of approximately 65 feet (20) metres, with a planned total measured depth of approximately 9,560 feet (2,915 metres) and total vertical depth of 9,320 feet (2,842 metres). The well will evaluate the South West Prospect in the south west corner of a major salt dome. The SM6 #1 well will be drilled to only test the un-pressured (shallow) section of the South West Prospect. Byron, through its wholly owned subsidiary Byron Energy Inc. (the operator), has a 100% working interest and a 81.25% net revenue interest in SMI 6.

Byron Energy awaiting arrival of 'Spartan 202'

Byron Energy Limited (Byron or the Company) advised on 10 March 2014 that it was anticipating to spud Byron Energy SM6 #1 well (“SM6 #1”) in early to mid-April, 2014, with the actual spud date depending on when the ‘Spartan Rig 202’ is finished with its current drilling commitment. Spartan Offshore Drilling (“Spartan”), the rig owner, has advised Byron that ‘Spartan Rig 202’ has been further delayed completing its current drilling commitments to another operator. Based on the latest information from Spartan, Byron anticipates spudding SM6 #1 in the middle of May. The actual spud date is dependent on when the ‘Spartan Rig 202’ completes its current drilling commitment. The SM6 #1 well will be drilled on the South West Prospect, in the south west corner of a major salt dome in the South Marsh Island Block 6 (“SMI 6”) lease. The prospect is located 216km southwest of New Orleans, offshore Louisiana, in the shallow waters of the Gulf of Mexico at a water depth of approximately 17m. Byron owns a 100% working interest and an 81.25% net revenue interest in SMI 6 and is the operator of the block.

Spartan 202 contracted by Byron Energy

Byron Energy Limited (Byron or the Company) advised on 17 February 2014 that it expected to spud Byron Energy SM6 #1 well (“SM6 #1”) in the first half of March 2014, subject to ‘Spartan Rig 202’ completing its existing drilling commitment. Based on the latest information from Spartan Offshore Drilling, Byron is anticipating a spud date in early to mid-April, 2014, with the actual spud date depending on when the ‘Spartan Rig 202’ is finished with its current drilling commitment. The SM6 #1 well will be drilled on the South West Prospect, in the south west corner of a major salt dome in the South Marsh Island Block 6 (“SMI 6”) lease. The prospect is located 216km southwest of New Orleans, offshore Louisiana, in the shallow Gulf of Mexico at a water depth of approximately 17m. Byron owns a 100% working interest and an 81.25% net revenue interest in SMI 6 and is the operator of the block.