South Marsh Island 71 (SM 71)

Ownership: 50.00% with Byron Energy Inc (50% and Operator)
Status: Exploration
Location: Offshore Gulf of Mexico
Area: 12.16 km2

Otto owns a 50% Working Interest (“WI”) and a 40.625% Net Revenue Interest (“NRI”) in the South Marsh Island block 71 (“SM 71”), with Byron Energy Limited (“Byron”) the operator, holding an equivalent WI and NRI. Water depth in the area is approximately 137 feet. Production commenced from two wells (F1 and F2) in March 2018 and the F3 well on 6 April 2018.
Because of the northerly well bore trajectory of the F3 well, the very updip portions of the three other oil sands were penetrated during the drilling of the well. The J1, B55 and B65 Sands each logged approximately 5 feet TVT net oil pay in the F3 well, consistent with pre-drill expectations. The data points of these three sands will serve to help delineate the size of each reservoir for future reserve determinations.
In addition to the J1, B55 and B65 zones, the F3 well also intersected 12 feet TVT net oil pay in the C10 which is productive in other parts of the dome but, to date, not productive at SM 71. Pre-drill mapping did indicate that the F3 would be at the very updip edge of the C10 in this well bore and this result sets up a further opportunity to be exploited in future well bores or in the F3 wellbore.