Ann: SM71 F5 Well Results, page-9

Some positive news.
The F5 well, while not a stunning success as yet, is still considered to be commercial. The side-track for F5 makes commercial sense and will be pursued but not immediately. The reason for the delay in side-tracking has to do with staffing issues for the rig-owner around the COVID-19 epidemic.

The rig at SM71 will be decommissioned until those issues are resolved. It is being negotiated for the decommissioned rig to remain on-site rather than be sent back onshore where the rig-owner already has 10 idle rigs. By leaving the rig on-site until it is recommissioned BYE will save US$1m.

With BYE's existing oil price hedge position BYE's plans for the rest of 2020 are underwritten by production. That means that the commissioning of SM58 will proceed as planned as will the side-track of F5 and at least one extra well on SM58 - as planned.