Otto Energy reports successful well results at South Marsh Island Block

LONDON -- Otto Energy Limited has advised that its OCS-G34266 #F3 well (F3) on South Marsh Island Block 71 (SM 71), was drilled to a final TD of 7,717 ft Measured Depth (MD) on Jan. 26, 2018. After logging the well with open hole triple combo logging tools on Jan. 27, 2018, operations to run 7 ⅝-in. casing to TD prior to temporary suspension for completion in the D5 Sand are underway. Hydrocarbons in five discrete intervals were measured using both Log While Drilling (LWD) gamma ray and resistivity tools and wireline Triple Combo porosity tools.

The primary target in the F3 well was the D5 Sand which logged 211 MD ft of oil pay (175 ft TVT net oil pay) as determined by open hole logs. While only 70 ft away from the previously drilled SM 71 F2 well, the D5 Sand was 45 TVT feet thicker in the F3 and exhibits excellent rock properties with porosities in the 32% range. With the base of the D5 Sand in the F3 well 150 ft below the base of D5 Sand in the F2 well, the D5 Sand oil column has been further extended downdip. This means the total oil column proven by the three D5 wells is an astounding 1,160 ft. The F3 well will be the second take point in the D5 Sand reservoir at SM 71. The SM 71 F1 well drilled in 2016 will be the other D5 producer and contains 91 ft TVT net oil pay in an updip position. 

With the additional penetration of the D5 Sand in the F3 well, the Operator has re-evaluated pay counts in the F2 well based on bed geometry and well bore angle. This has resulted in an increase in TVT oil pay thickness in the F2 well from the previously reported 117 ft TVT net oil pay to 132 ft TVT net oil pay. These net pay counts will result in a reserve upgrade for the D5 Sand in the Company’s next reserve report.

Because of the northerly well bore trajectory of the F3 well, only the very updip portions of the three other oil sands were penetrated. The J1, B55 and B65 Sands each logged approximately 5 ft TVT net oil pay in the F3 well, consistent with pre-drill expectations. The data points of these three sands will serve to 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 ft TVT net oil pay in the C10, which is productive in other parts of the salt 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.

The F3 well marks the end of the 2017 drilling program.  The next phase of the SM 71 project will be to complete the F1, F2 and F3 wells for production utilizing modern sand control techniques common to the Gulf of Mexico to optimize production rates and longevity.  Concurrently, final piping and instrumentation work on the SM 71 F platform is nearing completion. Production start-up is targeted for March. It is anticipated that the three wells will utilize a high percentage of the SM 71 F Platform’s oil and gas production capacity.

Otto holds a 50% working interest (40.625% net revenue interest) in South Marsh Island Block 71 through a wholly owned subsidiary Otto Energy (Louisiana) Inc. The operator, Byron Energy Inc., a wholly owned subsidiary of Byron Energy Limited holds the remaining 50% working interest.