- Byron Energy (ASX:BYE) is an ASX-listed oil company with a market cap of just under $110 million
- The company operates offshore in the prolific US Gulf of Mexico
- Net daily oil production from offshore GOM assets has passed 2000 barrels of oil a day (bbl/d)
- Shares are up 9.5 per cent, trading at 11.5 cents at 2:59 pm AEDT
Byron Energy’s (ASX:BYE) share price has seen decent gains today on the news that oil production from the Gulf of Mexico has exceeded net more than 2000 barrels of oil per day.
This reflects a 60 per cent production increase since July of 2023.
The “net” figure means those barrels in Byron’s ownership are free to sell.
SM58 Byron Energy’s main asset
Pushing up production so much since July were drilling campaigns carried out in early H2 CY23.
However – South Marsh 58 assets (“SM58,” referring to an offshore production licence in the GOM,) are 100 per cent owned by Byron.
Byron Energy’s platforms sit in relatively shallow waters offshore Louisiana.
Likely attracting shareholder enthusiasm today is the fact that SM58 now makes up more than 80 per cent of Byron’s oil and gas production.
“Complex geological puzzle” solved
Gas products, for the uninitiated, are produced as a byproduct of oil extraction.
“The SM58 area has proven to be a very productive yet complex geological puzzle,” Bryon Energy CEO Maynard Smith said.
“[The] SM58 area now accounts for over 80% of our business and will continue to grow with the additional wells planned for 2024.
“The company has re-established significant oil production rates exceeding net 2000 bopd as a result of recent [drilling] success.”
BYE shares were up 9.5 per cent, trading at 11.5 cents at 2:59 pm AEDT.