Ownership: Otto Energy 45%. Earning via staged farm-in with Byron Energy Limited (Operator)
Location: Offshore Gulf of Mexico
Area: 10 km2
During the Quarter, Otto exercised its option under the staged farm-in with Byron to acquire a 45% working interest in the Bivouac Peak lease. Otto has exercised this option following the successful drilling of the SM-71 #1 exploration well.
The Bivouac Peak lease covers approximately 2,500 acres of highly prospective acreage in the transitional zone onshore southern Louisiana. Byron has identified multiple prospects at both the Middle and Lower Miocene levels demonstrating stacked amplitude and AVO (amplitude versus offset) support. Follow-up drilling options have been identified at the Lower Miocene level that could increase the scale of the overall opportunity.
Additional geological and geophysical work will be undertaken by the joint venture prior to drilling of the first well, which is presently targeted for 1H 2017.
Significant production exists in the adjacent Miocene sequence at the Little Bay field (>45 Bcf gas and 5 MMbbl condensate) and the Atchafalaya Bay field (>100 Bcf gas and 0.6 MMbbl condensate).
With nearby production infrastructure already in place, any successful well at Bivouac Peak would be capable of being brought into production within 6-12 months.