Byron Energy Limited announces that Byron Energy Inc., a wholly owned subsidiary of the Company, has been advised by the Bureau of Ocean Energy Management (“BOEM”) that its bids for Main Pass 293, 305 and 306 leases, at Gulf of Mexico OCS Lease Sale 251 held on Wednesday 15 August 2018 in New Orleans, Louisiana, have been deemed acceptable by BOEM and the leases have now been awarded to Byron.
As reported in the Company’s ASX release as of 16 August 2018, Byron bid approximately $US0.4 million in gross bonus bids on the following blocks:
| Block | Working Interest ("WI") | Net Revenue Interest ("NRI") |
|---|---|---|
| Main Pass 293 (“MP 293”) | 100.00% | 87.50% |
| Main Pass 305 (“MP 305”) | 100.00% | 87.50% |
| Main Pass 306 (“MP 306”) | 100.00% | 87.50% |
The three leases comprise the MP 306 field as formerly designated by the BOEM. The MP 306 Field was discovered in 1969 and lies in approximately 200 feet of water. Total produced hydrocarbons from the field are 96 million barrels of oil and 107 bcf of gas from 172 of the 249 total wells drilled. The field ceased production in late 2009 and the last well drilled on any of these blocks was in 2004. The production was from a number of sands ranging from a depth of 4,000 to 9,000 feet.
The produced hydrocarbons on these leases were trapped in Pliocene sands truncated by a structurally complex salt dome. The structural complexity of the salt dome combined with the stratigraphic variation of the trapping sands and possible deeper stratigraphic targets makes this salt dome an ideal candidate for Reverse Time Migration seismic imaging, similar to Byron’s operated SM 71 salt dome project.
Main Pass 293 and 306 were relinquished in October 2017 while Main Pass 305 was relinquished in November 2016. The fact that no new drilling has taken place on this salt dome over the last fifteen years is an indication that considerable opportunity for subtly trapped reserves remains.
