Ann: SM58 G5 Well Logs Hydrocarbon Pay and To Run Casing, page-2

SM58 G5 Well Logs Hydrocarbon Pay and Preparing to Run Casing

• 81 feet of True Vertical Thickness pay has been logged in the SM58 G5 wello 11 feet of TVT pay in the secondary I2 Sand
o 23 feet of TVT pay in the secondary K4/B65 Sand
o 47 feet of TVT pay in the secondary L2 Sand
• The primary N2 Sand has not been reached yet
• Following a failure of the transmission for the rig’s top drive, current operations are preparing to run 7” casing to preserve the pay sands for completion
• Drilling operations to evaluate the N2 Sand will begin once casing is run and rig repairs are complete - 600 feet of drilling remain to reach total depth
• First production from the G3 and G5 wells is expected in July 2022

Byron's CEO Maynard Smith said:

"The presence of the L2 Sand in the G5 well is very good news. Steelhead South was one of our top oil prospects & while we hoped the L2 might be present in the G5, we did not expect the quality & thickness of the L2 oil that was logged. Additionally, the K4 Sand is better developed in the G5 than anticipated & will provide a straw into the downdip K4 Sand accumulation in the future.

The top drive failure was very disappointing as the EOD 264 had been performing well. We have had virtually no downtime caused by the rig during this program & to be so close to total depth & have this happen is frustrating. But running casing here preserves the L2 and K4 Sands and allows us to reach the N2 Sand with only a modest increase in cost.

Our engineering team and vendors have done a tremendous job adjusting the program to get ready to run the casing.

The current two well program at SM58 can already be considered a success & we look forward to the increased cashflow to Byron once these wells are on line in July.”