Byron Energy Ltd

Byron was removed from the ASX official list at close of trading on 17 July 2024, at its own request, after shareholders approved delisting. Its shares can no longer be traded on ASX.

registration revoked

Shareholders passed the delisting special resolution, with about 90.4% of votes cast in favour from nearly 61% of issued shares voting. Suspension is expected 15 July and removal from the ASX official list on 17 July 2024.

agm notice

Byron asked ASX to remove it from the official list, with ASX approval conditional on a special shareholder resolution. It requested 17 July as the delisting date. The board says the share price undervalues assets; MST values Byron at A$0.46 against A$0.08. This reverses the CEO's earlier stance of no equity raise.

other

SM58 G4 fell from 652 bopd at start-up to 45 bopd as water production rose, and remedial work was being designed. G5's K4 Sand was producing 307 bopd with confirmed perforation damage and sand-up risk. Net company sales on 20 April were 1,718 bopd.

well test result

Collarini's 31 December 2023 assessment shows 1P reserves of 12.5 MMboe, up about 1% as additions offset production, and 2P of 17.7 MMboe, down about 7%. Prospective resources rose about 81% to 95.8 MMboe with SM60 and a new SM66 prospect.

resource reserve update

Byron was apparent high bidder on SM60 and SM70 in Lease Sale 261, bidding US$310,985 in total. It relinquished both in mid-2023 and re-bid after new data, expanding its position around the SM73 salt dome. Award depends on BOEM review.

asset acquisition disposition

Byron drew a second US$9m under its oil prepayment facility, taking the total to US$19m of US$22m. The lender waived the extra hedging for this draw and cut the per-barrel fee to about US$1.05. The funds are for working capital.

debt financing

Byron's net oil production is 2,008 bopd, up more than 60% since July 2023, with SM58 over 80% of output. G6 has shifted to oil at about 350 bopd gross and G1 adds 340 bopd, supporting a planned 2024 Cutthroat North well.

production update

G6 BP1's N2 Sand began flowing 9 November 2023 at 6.6 mmcfgpd and 160 bopd of condensate; G4 is steady at 652 bopd. The rig was released 10 November, with costs in line with pre-drill estimates. The G4/G6 campaign is now producing, as flagged in earlier updates.

production update

SM58 G4 began producing 26 October 2023 at 654 bopd and 412 mcfgpd, with no water. G6 BP1's N2 Sand is completed and due on stream within about 7-10 days. This follows the September drilling; Byron holds 100% WI (83.33% NRI) and says the program is on budget.

production update

After G6's casing stuck, Byron sidetracked it (G6 BP01) to 10,575 feet. It logged 24 feet of likely oil pay in the L2 Sand and 78 feet of hydrocarbon in the N2 Sand, resolving the earlier poor N2 result. Completion is next, with first production from G4 and G6 expected mid-Q4 2023.

drilling result

SM58 G4 (Tiger Trout) reached 10,169 feet and logged about 59 feet true vertical of likely oil pay in the K4 Sand, an attic above an older pool that produced 1.4 million barrels. Secondary targets were unsuitable. This is consistent with Collarini's 1.08 mmbo proved undeveloped estimate.

drilling result

Byron drew the first US$10m of its US$22m oil prepayment facility, as the 1 August release required before 30 September. It placed physical hedges of about 475 bopd (about 30% of gross oil) at over US$74.80 average over the 24-month term. The second draw of US$12m is optional.

debt financing

SM58 G6 (Gila Trout) logged 23 feet true vertical oil and gas pay in the L2 Sand and 10 feet in the I1 Sand. The second main target, the N2 Sand, was poor quality. The rig drilled on, on budget and schedule, after the August rig arrival.

drilling result

Collarini's 30 June 2023 assessment puts net 1P reserves at 12.4 MMboe (down about 6%, mainly production) and 2P at 19.0 MMboe (up about 2%). About 85% of 1P comes from the 2019 US$4.3m SM58/SM69E purchase. Prospective resources fell about 39% to 53 MMboe after relinquishments.

resource reserve update

The EOD 264 rig is on location at SM58 G to batch-drill the G4 (Tiger Trout) and G6 (Gila Trout) wells. Byron's in-house net 1P estimate is 2.3 mmbo and 2.8 Bcfg, with a total program cost of about US$30m. This ends the long rig delay.

drilling spud

Byron closed a US$22m multi-draw prepayment facility with its oil buyer: US$10m initial draw by 30 September, optional US$12m later, roughly 15% a year in effective cost. Offtake runs to December 2026, and directors' loans extend to December 2025. Funds the US$31m SM58 program.

debt financing

BOEM awarded Byron the Grand Isle 63/72 and SM57 leases from Sale 259. Byron's own estimate for GI63/72 is 4.1 mmbo and 156.8 Bcfg net prospective resources; the platform bought in November 2022 is said to suit it. SM57 Silver Trout is drill ready.

regulatory community update

Byron was sole high bidder (US$147,525 each) on Grand Isle 63 and 72 and South Marsh Island 57, subject to BOEM review. The rig slipped again to late June/July 2023. SM70 will be relinquished, dropping Golden Trout, partly citing lower gas prices.

regulatory community update

The SM69 E2 well, flowing since October 2021, reached project payout of over US$22m in under 15 months. W&T Offshore converted its royalty to a 30% working interest, so Byron drops to 70% WI (58.33% NRI). E2 makes 725 bopd with no water.

production update

Net output has fallen to 1,818 bopd and 4,728 mcf/d, from over 2,300 bopd in September. SM71 F3 water cut hit 30% and the G3 and G5 wells keep declining with minimal aquifer support, contradicting hopes of stabilisation. The rig is delayed to March 2023; a used platform deck was bought for SM70.

production update

Collarini's 30 June 2022 assessment put net reserves at 13.2 MMboe proved (1P), 18.6 MMboe proved plus probable (2P) and 23.7 MMboe 3P. Proved developed reserves rose 163% to 6.90 MMboe on the E2, G3 and G5 wells, at a finding and development cost of US$10.60/boe.

resource reserve update

G3 began producing on 1 August at a managed 500 bopd, and G5 at 280 bopd. Byron's net output exceeds 3,000 boepd. G3/G5 capex came to about US$35.1m, against the US$21.6m originally planned and US$24.6m adjusted. F2/F4 recompletion started.

production update

G5 reached total depth and logged 36 ft of pay in the primary N2 Sand (thinner than the 50 ft predicted) plus 11 ft in N4, for 128 ft of net pay in five sands. Byron signed the EOD 264 rig contract for three wells plus an optional fourth.

drilling result

SM58 G5 (Smoked Trout) logged 81 ft of pay in three sands, including 47 ft of oil in the L2 Sand, which Byron calls a very positive outcome. A rig top-drive failure forced casing to be run before the primary N2 Sand was reached.

drilling result

SM58 G3 (Rainbow Trout, 100% owned) logged 58 ft of oil pay: 27 ft in the J Sand (thinner than the 50 ft Collarini predicted) and 31 ft in K4/B65. Casing set; first production expected July. Rig contract widened to three wells plus an optional fourth.

drilling result

Byron committed to a two-well SM58 programme (G3 Rainbow Trout, G5 Smoked Trout) starting April 2022, targeting combined net 2P of 3.5 Mmbo and 4.6 Bcf at about US$20m total cost. Funded by free cash flow plus a prepayment facility of up to US$11m; oil offtake extended three years.

drilling scheduled

SM69 E2 began producing 21 October at a stable 1,130 bopd and 0.43 MMcfd gross with no water, lifting Byron's net oil output to about 2,063 bopd from 1,155. Collarini booked 1.1 Mmbo net 1P; E2 is expected to pay out in under a year.

flow test result

Collarini's 30 June 2021 report put Byron's net 2P reserves at 14.1 Mmbbl of oil and 97.5 Bcf of gas (30.4 MMboe), with 1P at 8.7 Mmbbl and 55.1 Bcf. Byron chose not to drill SM59, which cut prospective resources by 16.3 Mmbo and 62.8 Bcf.

resource reserve update

SM69 E2 reached 8,157 ft MD and logged oil in three sands (K, K4, L2), meeting pre-drill expectations; the M6 sand had an oil-water contact. Logging tools stuck downhole, delaying completion. SM71 and SM58 production restarted 9 September after Ida.

drilling result

Refinancing collapsed: Byron could not agree hedging terms with the lender, which required hedging nearly 100% of producing output. It will keep the existing Crescent loan. SM69 E2 remains on for August; G3/G4 timing awaits E2 result. Net output is 1,236 bopd and 9.5 mmcfd.

debt financing

Byron gave a non-binding lender 90 days' exclusivity on refinancing and booked the EOD 351 rig to drill SM69 E2 by 1 August. SM58 G2 stopped returning to stable output after a March pressure survey, now about 60 bopd with water. G3/G4 are planned for Oct-Nov if funded.

joint venture update

Interim Collarini report at 31 Dec 2020 lifts company-wide net proved developed producing reserves 157% to 3.23 Mmboe. SM58 net 2P is 9.6 Mmbo and 30.7 Bcf. Refinancing is under way, and the SM58 G platform's remaining slots G5-G9 were permitted on 10 Feb.

resource reserve update

Byron hired Seaport Global to arrange US debt financing, aiming to refinance existing loans in the March 2021 quarter and fund SM69 E2 and SM58 G3 and G4 wells. No certainty a refinancing will happen. Net production is about 1,500 bopd and 15.5 mmcf/d.

debt financing

SM58 G2ST, the Brown Trout sidetrack, began producing on 29-30 October at a controlled 10.2 mmcfd gas and 50 bbl/d condensate. SM58 platform now makes about 29 mmcfd gross. The rig left on 30 October; drilling resumes March 2021.

production update

The G2 sidetrack to the Brown Trout prospect reached 7,720 ft MD and logged 280 gross feet of hydrocarbon in the Upper O Sand with no water contact. Casing will be run and completion takes about three weeks. The rig is then released until March 2021, to fund drilling from cash flow.

drilling result

Byron disputes Otto's 24 September reclassification of SM71 reserves, and stands by its 10 September Collarini Associates report. It says Otto used an unrelated firm, and calls the F5 gas sand a stray sand rather than the D5. This is a public disagreement with its 50% SM71 partner.

joint venture update

SM58 G2 reached 11,237 ft MD and was deemed non-commercial, with low-saturation sands consistent with a failed seal in the Lower O Sand. The Lower O Sand was a prospective resource, not reserves. Byron will sidetrack to the Brown Trout prospect, which has 1.6 MMbbl of 3P reserves.

drilling result

Collarini's 30 June 2020 estimate: 1P 8.1 MMbbl oil and 58.5 Bcf gas; 2P 17.5 MMbbl and 105.3 Bcf, NPW-10 US$486m (2019: US$562m); 3P 25.3 MMbbl. 2P is down 17% including GI95, and about flat excluding it. Prospective resources rose.

resource reserve update

SM58 G1 began production on 7 September, within a week of the delayed target, at controlled initial rates of 19.4 mmcfd gas and 375 bopd condensate. G2 is nearing casing point, and G1 is shut in while G2 drills through the Upper O Sand.

production update

Byron let the Grand Isle 95 lease lapse at end of August 2020, calling the dry-gas project less attractive than its oilier South Marsh Island and Eugene Island areas. About US$0.2m non-cash charge; 2P gas of 44.6 Bcf removed from inventory.

asset acquisition disposition

SM58 G1 Upper O Sand completion finished about five days early and under budget, with 217 ft perforated. The rig moves to drill G2 to 11,565 ft MD to test the Lower O Sand, which G1 could not log. Pipelines are laid and first production is targeted 1 September.

production update

The share purchase plan raised about A$13.8m at A$0.13 after a 20% scale-back, against a A$4m target and A$17.3m of applications. With the placement, A$27.6m is raised, so G2 can be drilled straight after G1. A$2.2m director placement awaits approval.

capital raising announcement

Byron raises A$16m via a placement of 123.1m shares at A$0.13, plus an A$4m share purchase plan and up to US$3.5m more from Crimson. Funds complete the SM58 G platform, now due for installation in early June. Directors' loans are extended a year to 31 March 2022.

capital raising announcement

Because of the oil price collapse, Byron shuts in SM71 F1 and cuts F3 to 1,850 bopd, taking field output to about 1,900 bopd gross to match hedged volumes. Cash was US$18.3m and debt US$18.9m at 29 Feb. SM58 platform and pipeline installation is under review, which may delay start-up.

production update

SM71 F5 reached 8,505 ft and found 36 ft of net gas pay in the D5 target, but the sand is isolated and gas-bearing, so marginal to uneconomic. It also found 12 ft and 20 ft of oil pay in the I3 and J sands. The well is suspended for a later sidetrack because of COVID-19.

drilling result

SM71 F4 began producing about five days earlier at 8.3 mmcf/d of gas with little liquid, because it hit a small gas cap above an oil leg. Byron says oil may take several months to arrive; the gas equals roughly 500 bopd in value.

production update

After the F4 success, Otto elected to join the SM71 F5 development well, 50/50 with Byron. Drilling starts around 1 March, targeting D5 Sand possibly poorly drained by F3, planned depth 8,788 feet. F4 production expected in 4-6 weeks.

drilling scheduled

SM71 F4 reached total depth of 8,130 feet and logged 91 feet of net hydrocarbon pay in the Upper D5 Sand, at the upper end of expectations. It was drilled 25% under budget; completion takes about 16 days.

drilling result

The rig arrived at SM71 on 25 January to drill F4 (25 days). D5 production passed 2m bbl, SM58 G platform is on track for June 2020, and a contract with Enterprise covers four more wells from mid-May, starting with SM69 E2.

drilling scheduled

The entitlement offer closed with applications for A$9.9m; the underwriter takes 5.32m shares for the balance. Total 42.08m new shares at A$0.27 raise about A$11.36m, completing the funding alongside the A$14.0m placement. Allotment expected 18 December.

capital raising announcement

Byron closed the binding US$15m Crimson Midstream secured promissory note (15%, 3 years, first year interest-only), with US$10m drawn, to build the SM58 platform. Includes a discounted oil transport deal and a hedge of 300 bopd at US$52.20. Completes the 6 November term sheet.

debt financing

Byron raises about A$25.9m at A$0.27 a share: a A$14.5m placement and a fully underwritten 1-for-18 entitlement offer of about A$11.4m, a 14.3% discount to the last close. Funds go to SM58 development and SM71 drilling, alongside the Crimson loan. Directors are in for 2m placement shares, pending approval.

capital raising announcement

Byron signed a term sheet for a US$15m loan from Crimson Midstream (a Carlyle portfolio company) to build the SM58 platform: 15% interest, 3 years, senior secured over SM71 and SM58. Closing is targeted for end of November 2019. A discounted oil pipeline deal and hedging on about 50% of SM71 forecast production are included.

debt financing

Collarini adds the Lower O Sand (Cutthroat/Steelhead) and a North Cutthroat fault block to SM58 prospective resources, up 10.7 MMbbl oil and 14.0 Bcf gas net to 11.2 MMbbl and 29.4 Bcf. Mud logs only, so these remain unproven; the G2 well will test them.

resource reserve update

Otto Energy chose not to join the SM71 F4 (Sausage) well, so Byron will drill it as a 100% well, spudding January 2020 after a compressor upgrade. Byron can recover 600% of certain costs before Otto may regain its interest. F5 proposal to follow.

farm in farm out completion

SM58 011 BP01 stopped at 11,179 ft MD because of poor hole conditions, with no wireline logs run in the Lower O. Mud logs show 180-250 ft of likely hydrocarbons. The well will be suspended for production from the Upper O after a platform is installed; funding talks are ongoing.

drilling result

Five lenders agreed to extend the repayment of Byron's roughly US$4.1m director-linked loan facility from 30 November 2019 to 31 March 2021; one A$1.0m lender is undecided. A new second facility of about US$3.0m, mostly from directors, is due 31 December 2019. Both bear 10% interest.

debt financing

Collarini's 30 June 2019 report lifts Byron's net 2P oil reserves 118% to 17.4 MMbbl (2P gas 150 Bcf), with 2P NPW-10 of US$562m. SM58 accounts for 2P oil up 10.8 MMbbl, including 6.0 MMbbl and 21 Bcf from the Upper O Sand. A funding model to limit dilution is flagged.

resource reserve update

The bypass well found 301 ft net pay (versus 271 ft), but a rig equipment failure left 7 5/8 inch casing stuck at 7,940 ft. Byron will run 5 1/2 inch casing across the pay, limiting rates; Enterprise has promised to make good. Lower O drilling is uncertain.

drilling progress report

Logs show 302 ft gross and 271 ft net O Sand pay in SM58 011, with liquids-rich gas and high-quality oil, confirming the Cutthroat discovery. Byron is moving to develop SM58 with its purchased platform; third-party reserves are expected mid-September.

drilling result

SM58 011 hit hydrocarbons at the top of the O Sand at 10,435 ft MD, as predicted, with 300 ft gross thickness and no water seen to 10,875 ft. Drilling continues to 11,466 ft; the CEO expects a commercial development. Fluid type is not yet confirmed.

drilling result

SM58 011, the first well on the recently acquired SM58 block, began drilling on 6 August 2019 with the Enterprise 263 rig. It is to test the Cutthroat O Sand prospect to 11,466 ft MD, about a month's work, at 100% Byron cost.

drilling spud

Metgasco will pay Byron A$1.75m by 30 September 2019 to settle its share of SM74 well costs, capped with no further overrun liability. It also exercised its 10m Byron options at A$0.25, closing out the failed SM74 well exposure.

farm in farm out completion

The SM74 D14 bypass well, drilled to 14,933 ft MD, found thick wet sands with only thin, uncommercial hydrocarbon shows. Byron calls it a failed trap and is plugging the well. This ends the Raptor thread. Rig Enterprise 263 is contracted for SM58 #11, spud mid-August.

drilling result

BOEM accepted Byron's roughly US$188,000 bid, so SM60 is now awarded: 100% WI, 87.5% NRI. This resolves the 90-day review open since March. It lifts Byron to nine blocks around the SM73 salt dome.

asset acquisition disposition

The SM74 D-14 Raptor well spud on 15 May 2019 from Ankor's SM73 D platform, after earlier slips. Target depth is 16,747 ft MD, about 50 days, testing 5.2 mmbo and 13.2 bcf gross prospective. SM71 is back producing after a 7-day pipeline shut-in.

drilling spud

Reprocessing of 172 sq miles of seismic is complete. It generated new prospects, especially at SM58, but did not support VR232 and VR251. Byron will write off about US$0.54m and US$0.45m, remove 4.8 Bcf and 74,000 bbl net prospective resource, and hand VR232 to Otto.

resource reserve update

Byron bought a production platform (two decks, jacket and equipment) from a private company for US$1.0m. It expects savings of about US$4m and 6-9 months faster first production. Likely use is SM58, if the SM58 #1 well is a commercial discovery.

asset acquisition disposition

Byron signed a non-binding letter of intent to drill the SM69 E2 well off the E Platform, targeting 2.0 Mmbo and 2.3 Bcf gross prospective. Funding 100% earns 100% WI. Spud is planned August-October 2019, subject to final agreements, rig and permits.

material agreement

Byron says SM58 holds 18.5 Mmbo and 57 Bcf of gross prospective resource, mapped on its new seismic, and will drill it ahead of EI77 and EI63 after SM74. It set up an unsecured US$4.2m loan facility, US$3.25m from directors, for short-term contingencies.

resource reserve update

Byron closed the US$4.25m acquisition of South Marsh Island 58, the E1 producing well and the SM69 E platform, effective 1 January 2019. Lease assignments are filed for regulatory approval. This completes the deal announced on 14 February.

asset acquisition disposition

Byron agreed to buy South Marsh Island 58 and related assets for US$4.25m: 100% WI above 13,639 ft, a 53% WI in the E1 producing well, and the SM69 E platform. E1 was making about 120 bopd. The block adjoins its SM57 and SM59 leases.

asset acquisition disposition

SM71 passed 1 million barrels of gross oil production on 15 January 2019, with no water produced. Byron says the initial capital cost of the platform, wells, pipelines, seismic and leasing has been recovered.

production update

Byron signed a drilling contract for the White Fleet Drilling 350 rig to drill SM74 D-14 from the SM73 D platform. The rig is expected in early February, so spud is on track for February 2019. Metgasco pays 40% of the roughly US$11m cost.

contract award

Weiss-Adler No. 1, Byron's first Bivouac Peak well, reached 17,766 ft MD and is a dry hole: one objective was water-bearing, the other had under 5 net feet of hydrocarbons. It is being plugged. Cost is under US$7.5m versus US$10.8m budgeted.

drilling result

BOEM accepted Byron's bids and awarded Main Pass 293, 305 and 306 at 100% WI, about US$0.4m gross bonus. The blocks sit on a salt dome that produced 96 million barrels of oil. This resolves the 16 August high-bidder status.

asset acquisition disposition

Byron signed the final platform-use and production-handling agreements on 9 September for drilling SM74 from the SM73 D platform. Spud has slipped from October/November 2018 to February–April 2019, depending on rig availability and BOEM permit. Metgasco holds 30%.

material agreement

Independent Collarini report (effective 30 June 2018) lifts Byron's net 2P reserves to 29.3 MMboe from 2.3, and 1P to 11.1 from 0.7. Eugene Island 62/63/76/77 gives 45% of 2P. Net prospective resource is steady at about 134 MMboe. Follows the SM71 upgrade of 6 August.

resource reserve update

The Weiss-Adler No. 1 well at Bivouac Peak East began drilling on 25 August 2018 and was at 1,300 ft TVD by 26 August. Target is 18,000 ft TVD in about 75 days. Byron holds 43%. Resolves the spud thread; the East prospect holds 32.2 MMboe gross prospective resource.

drilling spud

Byron was apparent high bidder on Main Pass 293, 305 and 306 in Lease Sale 251, bidding about US$0.4m gross at 100% WI. The blocks cover a salt dome that produced 96 million barrels of oil. Bids remain subject to BOEM review, up to 90 days.

asset acquisition disposition

Independent report (effective 30 June 2018) lifts SM71 net 2P reserves to 6.6 MMBOE from 2.3, and gross 2P to 16.2 MMBOE from 5.6. Byron says gross project payout of US$52m is expected within a year. Resolves the pending reserves update.

resource reserve update

Byron signed a letter of intent to drill its SM74 prospect from the adjacent SM73 D platform, and farmed out 30% WI to Metgasco, which pays 40% of the US$11m well. Spud targeted November 2018; Byron says up to US$20m could be saved. Prospective resource 5.2 million barrels and 13 Bcf.

farm in farm out agreement

All partners committed to the Bivouac Peak East well, to spud in the second half of August. Interests are now Byron 43%, Otto 40%, Metgasco 10% and NOLA 7%. Well cost is estimated at US$10.8m, with target depth 18,294 ft and about 75 days to drill.

farm in farm out completion

F2's B65 sand is estimated to be a 3-acre trap against 175 acres targeted, and F2 stopped flowing after 8 hours on 2 July. F1 and F3 still produce about 4,245 bopd. B55 recompletion is planned for early September. This confirms the F2 B65 disappointment.

well test result

All key Louisiana and US Army Corps permits for the Bivouac Peak well were approved on 21 June, in four months. Drilling could start mid-August, subject to partner elections due 9 July. Only NOLA has elected so far. Well target depth is 18,294 ft.

regulatory community update

BOEM awarded the remaining Sale 250 blocks SM 70, VR 232 and VR 251, so Byron won all seven blocks bid for (US$2.61m gross bonus). It now holds seven leases around SM71 and 13 OCS leases. VR 232 is split 50/50 with Otto, whose rights to join new projects end.

asset acquisition disposition

BOEM accepted Byron's bids for Eugene Island 62, 63, 76 and 77, awarded at 100% WI and 87.5% NRI for US$1.012m total bonus. In-house mapping shows 308 bcf gas and 12,600 mbo gross prospective resource. Resolves part of the Sale 250 bids.

asset acquisition disposition

April net revenue about US$2.4m; F1 and F3 steady at 4,200 bopd as expected. F2 (B65) has lost over 50% of initial pressure and fluctuates 300-500 bopd, pointing to a smaller reservoir than mapped. This worsens the F2 concern from March and April.

production update

Byron signed with WesternGeco to reprocess and extend 3D seismic over the SM71 project area, to 172 square miles. Processing takes about 6 months, and Byron alone funds and manages it. The CEO calls it the first use of SM71 cash flow. The cost is not stated.

contract award

All three wells are averaging 4,650 bopd and 3,200 mcfpd, over 90% of platform capacity, after a four-day pipeline shut-in from 19 April. Byron's net sales revenue is about US$125,000 a day at US$68 WTI. Gross operating costs are expected near US$250,000 a month.

production update

F3 began producing on 6 April; platform output is 4,288 bopd across all three wells, near the roughly 4,300 bopd facility limit. F2 has partly recovered to 662 bopd. The pipeline shut-in has been postponed. Byron says SM74 is the next dome project.

production update

First oil from SM 71: F1 started on 23 March and F2 on 25 March, with combined rates restricted to about 4,000 bopd. Byron calls this its move to producer status. F3 is still being completed after the stuck-tool problem.

production update

Byron was apparent high bidder on seven Gulf of Mexico blocks in Lease Sale 250, with about US$2.6m gross bonus bids, subject to BOEM review. These include VR 232, which was rejected a year earlier, and three blocks near SM 71. F1 and F2 start-up is expected this week.

material agreement

F3 reached 7,717 ft MD in 22 days and logged 175 ft net oil pay in the D5, 45 ft thicker than F2 only 70 ft away. F2 D5 pay was revised up to 132 ft. Byron expects a D5 reserve upgrade; production start-up is now targeted mid-March.

drilling result

After the stuck pipe, F2 was cased at 7,700 ft to produce from the B65 sand. Byron will drill a third well, F3, to take the D5 using the Ensco rig. This delays first production about a month, to early March 2018.

production update

SM 71 F2 found oil in four sands, including B65 and D5, with an estimated 190 ft of net oil pay. This turns the B65 from a prospect into a find. Drill pipe stuck 214 ft below the D5; Byron expects a material reserves uplift.

drilling result

The SM 71 F2 well has spudded and is drilling at 564 ft MD, aiming for 8,965 ft. It targets the B65 sand (1.6 mmboe prospective net) on the way down to the D5 (625,000 boe probable net). This starts the drilling planned since September.

drilling spud

The SM 71 F platform is installed over the 2016 F1 well with no safety or operational issues, despite two weather delays. The Ensco 68 rig is due 25 November to drill F2, targeting B65 (1.6 mmboe prospective net) and D5 (625,000 boe probable net).

production update

Collarini's 30 June 2017 report keeps SM 71 2P reserves net to Byron at 2.27 million barrels of oil equivalent (3P 2.87). SM 71 prospective resources rose to 5.99 mmboe net. SM 57/59/74 prospective resources are 62.98 mmboe net, the first independent estimate. Resolves the pending update.

resource reserve update

CEO Maynard Smith, COO Prent Kallenberger and director Bill Sack signed new three-year service agreements from 15 September 2017. Kallenberger and Sack's pay, cut 33% in April 2015, is restored to US$350,000 each; Smith stays at A$160,000. Completes the 18 August announcement.

director officer appointment

BOEM accepted Byron's bid for GI 95, so the block is awarded at 100% WI and 87.5% NRI under the lower royalty rate. Byron previously held and relinquished it in August 2016. This resolves the Lease Sale 249 bid.

asset acquisition disposition

Byron signed a 60-day contract for the Ensco 68 jack-up rig, available end-November 2017, to drill SM71 F2 and complete F2 and F1 (formerly #1). F2 targets the B65 and D5 sands to 8,965 ft measured depth. Production is expected late January 2018.

contract award

BSEE granted the suspension of production for SM 71, effective 1 August to 30 November 2017, extending the lease beyond its 31 July expiry. Drilling of SM 71 #2 and completion of #1 are expected to start before end-November. First production is still expected January 2018.

regulatory community update

Byron was apparent high bidder on GI 95 in Lease Sale 249 with US$142,222 in bonus bids, for 100% WI and 12.5% royalty if awarded. Byron relinquished the block in August 2016 and calls the new bid a cheap five-year option on gas. BOEM review can take up to 90 days.

asset acquisition disposition

Byron raised A$26.5m through a placement of 378,970,262 shares at A$0.07, subject to shareholder approval at an EGM around 18 September. Directors invest A$3.6m. Funds go mainly to SM 71 development, including the #2 well, and convertible note repayment. This closes the open funding thread.

capital raising announcement

Byron's own estimate of prospective resources on SM 57/59/74 is 27.5m barrels of oil and 193 bcf gas gross (22.4m bbl and 156.8 bcf net). These are undiscovered, 15 prospects mapped, and to be included in the Collarini report due late August 2017.

resource reserve update

BOEM rejected Byron's VR 232 bid as insufficient and Byron will seek reconsideration. Otto has elected to take 50% of VR 232 if won, or the right to 50% of SM 74 if VR 232 is lost, using its new-asset option.

asset acquisition disposition

BOEM accepted Byron's bids for SM 57 and SM 59, so three of the four Lease Sale 247 blocks are now awarded at 100% WI. VR 232 remains under review.

asset acquisition disposition

Byron was apparent high bidder on four Gulf of Mexico leases (SM 57, 59, 74 and VR 232) near SM 71, with US$561,000 in bonus bids for 100% WI each. Awards depend on BOEM review, which can take up to 90 days. First SM 71 production is now expected by end 2017.

asset acquisition disposition

Byron drew down the full A$8m Metgasco convertible note, due by 21 July 2019, mainly for SM 71. SM 71 now moves to a Byron-run manned platform (4,500 bopd, 5 MMcf/d) at about US$3.0m extra net. More funding is needed by mid-2017; first oil is late in the December 2017 quarter.

debt financing

Partner Otto says Byron proposes changing the SM 71 platform to a manned design that connects directly to sales pipelines, adding about US$3.0m net to Otto. Otto supports it in principle, but the plan needs JV approval. First production is now guided for Q4 2017, later than Byron's mid-2017.

joint venture update

Byron will not renew the GI 95 lease, relinquishing it at end September 2016, citing low gas prices and its focus on SM 71 and Bivouac Peak. Contingent and prospective resources for GI 95 are removed (prospective now 68,693 MBOE). Reserves are unchanged; a US$0.29m non-cash charge applies.

asset acquisition disposition

Metgasco released news that it signed the formal Bivouac Peak Participation Agreement for a 10% WI (7.45% NRI), costing about US$1.3m to total depth. It confirms the EGM approval of its note and options. The first well is expected in Q1 or early Q2 2017.

farm in farm out agreement

Byron signed a deal with Laredo Construction to buy and refurbish a used 6-slot tripod platform for SM 71, fixed at under US$4.5m. Permits are to be filed by end October; installation is targeted mid-2017, with production following completion of the SM71 #1 well. Otto pays 50%.

contract award

Byron relinquished the SM 6 lease, accepted by BOEM on 24 August 2016, after finding no economic development path. It had 100% WI there; Otto earned nothing. Byron has 12 months to plug the wells and remove the caisson, and now focuses on SM 71.

asset acquisition disposition

Byron raised A$5.5m via a placement of 42.4m shares at A$0.13, an 11.82% discount to the 5-day VWAP. A$0.7m from directors needs shareholder approval. Proceeds will repay A$750,000 of director loans, alongside the pending Metgasco note.

capital raising announcement

Collarini's 30 June 2016 report puts Byron's net 2P reserves at 2,379 MBBL oil and 2,031 MMCF gas (2,718 MBOE), with SM 71 2P at 2,272 MBOE. Bivouac Peak is added at 30,576 MBOE net prospective. GI 95 is moved from reserves to contingent resource.

resource reserve update

Byron signed binding documents for the A$8m, 3-year Metgasco convertible note (12% coupon, secured over Byron's assets and SM 70/71 share) to fund SM 71. Metgasco gets 10m options at 25c and a Bivouac Peak 10% option. Shareholder approval is still needed.

debt financing

Collarini booked SM 71 net 2P reserves of 2,271 MBOE to Byron, up 508% on 2015, after the SM71 #1 discovery. Byron targets first production by mid 2017 and cites a further B65 sand prospect.

resource reserve update

Otto exercised its option to earn 45% of Bivouac Peak, paying about US$321,000 of past costs and funding the first well up to US$6.0m; drilling is expected early 2017. Byron will not re-enter SM6 #2 and will plug it, reassessing SM 6.

farm in farm out completion

Byron signed a Heads of Agreement with Metgasco for a 3-year convertible note of up to A$8m to develop SM 71, with a 12% coupon. Metgasco also gets 10m options at 25c and an option on 10% of Bivouac Peak. Shareholder approval is needed.

debt financing

SM71 #1 reached final depth of 7,477 ft and found a further 19 ft gas or gas-condensate sand, adding to the confirmed 132 ft net oil pay. The well will be suspended for production. Otto confirmed it will take 50%, cutting Byron to 50% WI.

drilling result

Preliminary logs show 132 ft of net oil pay in SM 71 #1 (I3 17 ft, J 24 ft, D5 91 ft). Casing is set at 6,820 ft and the well will be deepened about 600 ft to test the rest of D5 and the D6. Otto confirmed it will take 50%, cutting Byron to 50% WI.

drilling result

SM 71 #1 is an oil and gas discovery. It reached 6,843 ft and found three hydrocarbon zones totalling about 150 ft gross, including the D5 primary target. Byron plans to complete the well for production, which could make it a producer. Having reached earning depth, Otto can take 50%.

drilling result

SM 71 #1 spudded on 3 April 2016 using Hercules 205, drilling at 671 ft. It is the second Otto farm-out well, planned to 7,451 ft in about 20 days at US$4.5m. Otto has paid US$903,610 of past costs.

drilling spud

SM 6 #2 was abandoned at about 8,085 ft after the side-track also stuck, short of the G20 target. Otto did not earn into SM 6, so Byron keeps 100% WI. Otto elected to join SM 71 #1, which is due to spud this week.

drilling result

The Share Purchase Plan raised only A$285,550 from 1,870,344 shares at A$0.15, well short of the A$2.5m maximum. With the placement, total raised is A$4.8m before costs, and the loan conversion removes the 1 July 2016 repayments.

capital raising announcement

SM 6 #2 spudded on 15 February 2016 and was drilling at 479 ft, aiming for 9,516 ft in about 40 days. It is the first well under the Otto farm-out. Byron is 100% WI now, 50% if Otto earns in.

drilling spud

BSEE granted a Suspension of Production extending the SM 6 lease from 28 Dec 2015 to 31 Dec 2016, resolving the lease-expiry thread. A pipeline survey comes first, and the SM 6 #2 spud is still expected in Q1 2016.

regulatory community update

Byron raised A$4.5m via a placement of 29.9m shares at A$0.15, an 18.65% discount to the 5-day VWAP, to fund the Q1 2016 wells. A$2.5m SPP planned. Directors' loans (A$700k, US$612.5k) to convert to shares, subject to approval.

capital raising announcement

Byron farms out to Otto Energy: Otto earns 50% of SM 6 by paying 66.67% of SM 6 #2 dry-hole costs (capped at US$5.3m). Options follow on SM 70/71 and Bivouac Peak (45%). Up to US$17.3m total. A production handling deal with Fieldwood targets first production in the March 2017 quarter.

farm in farm out agreement

Byron acquired the Bivouac Peak onshore/marshland lease (about 2,400 acres, Louisiana) under the Aurora option, with 90% working interest and 67.05% net revenue interest. Its internal prospective resource estimate is 17.8 MMboe. It is not in the Collarini reserves report.

asset acquisition disposition

Byron contracted Hercules Rig 264 to drill SM 71 #1, with an option for a second well. Spud is expected in Q1 2016, subject to farm-out/funding and permits. Drilling cost is estimated at US$4-5m, to 7,250 ft measured depth. Byron holds 100% working interest.

contract award

Updated Collarini reserves at 30 June 2015: 2P 15.766 MMboe (4.198 MMbbl oil, 69.4 Bcf gas), about 4.6% below 2014 per the CEO, who attributes it to lower prices. Best-estimate prospective resources rose to 74.9 MMboe from 57.5, driven by SM 71 and EI 63/76 work.

resource reserve update

Byron completed SM 6 #1 BP02 on schedule by perforating the F40 Sand; pressures were as expected. The SM 6 lease is extended from 30 June to 27 December 2015. A second well to the G, H and I sands is subject to a farm-out.

well test result

Byron will re-enter SM 6 #1 BP02 with the Hercules 205 rig to perforate the F40 Sand (7,512-7,542 ft) over 8-10 days. This should extend the SM 6 lease, expiring 1 July 2015, by 180 days. A second well to the G, H and I sands now depends on funding or farm-out.

drilling scheduled

Byron raises A$11.0m through a placement of 44m shares at A$0.25, a 21.9% discount to the last close, in two tranches (the second needs shareholder approval). A planned share purchase plan of up to A$3.0m at the same price follows. Funds drilling and permitting plans.

capital raising announcement

Byron raises about A$2.27m by placing 4,541,095 shares at A$0.50 to sophisticated investors, below the A$0.65 of the 2014 placements. Funds working capital; Byron says it is pursuing strategic approaches for capital to drill a second SM 6 well.

capital raising announcement

Bill Sack, a Gulf of Mexico explorationist, joins as Executive Director on US$350,000 a year plus 1.7 million options at A$0.65. His firm Aurora grants Byron a one-year option over exploration prospects, for US$187,500 up front and up to US$187,500 more, plus a 2.5% royalty.

director officer appointment

Byron's first independent reserves report under SPE-PRMS (Collarini) gives 2P reserves of 4.79 million barrels of oil and 70.1 Bcf of gas (16.473 MMboe), all undeveloped, across SM 6, SM 71, EI 76 and GI 95. Best-estimate prospective resources total 57.5 MMboe.

resource reserve update

A top drive failure and a wedged drill pipe led Byron to suspend BP02 before reaching the G Sand. The F30 and F40 pay zones are left unobstructed for later completion; Byron intends to drill a second well to the G, H and I sands from the same caisson.

drilling result

Memory log data upgrade SM6 #1 BP02's F40 Sand net pay to 85 feet (from 70) and add 18 feet of net pay in the F30 Sand, both probably light condensate. Byron says SM 6 is expected to be commercial at current prices, with development anticipated over the next year.

well test result

BP02 logs show 70 feet of net pay in two lobes of the F40 Sand, probably light condensate. The sand is about 560 feet updip of the nearest earlier intersection, consistent with pre-drill ARTM seismic mapping. G20 is still to be drilled.

well test result

BP01's pipe could not be freed, so Byron will sidetrack again as BP02. It raises A$1.87m at A$0.65 (2,876,923 shares) and plans an up to US$3.3m unsecured director-participating loan at 10%, repayable by 1 July 2015, on top of the A$2.0m convertible loan.

capital raising announcement

Byron raises A$6.5m via a placement of 10,070,847 shares at A$0.65 (about 7.9% of shares), after SM6 #1's drill pipe stuck at 7,738 feet, about 600 feet above the G20 target. Funds a sidetrack. Directors also lend A$2.0m, convertible at A$0.65.

capital raising announcement

Spartan Rig 202 spudded SM 6 #1 at South Marsh Island Block 6 on 24 May 2014, where Byron holds a 100% working interest. Byron was preparing to run 10¾-inch conductor casing at 1,535 feet measured depth.

drilling spud

Byron is high bidder on three Grand Isle blocks (63, 72, 73) in Lease Sale 231, about US$488,000 in total if awarded, subject to BOEM review. The salt dome produced 827,000 barrels of oil and 12 Bcf gas from 1968 to 2009. Expected 100% WI, 81.25% NRI.

asset acquisition disposition

US regulator BSEE gave final approval on 14 February 2014 to drill SM6 #1, and the caisson is installed. Byron expects the Spartan rig to spud in the first half of March 2014. Also hires WesternGeco to reprocess seismic over two salt domes.

drilling scheduled

Byron contracts a Spartan jack-up rig for SM6 #1, with drilling to start no earlier than 1 March 2014, and orders a seven-slot caisson. This secures the rig for the first well, though the exact spud date depends on the rig's earlier commitments and final approval.

contract award

ASX says Byron Energy shares return to quotation at 10am on 30 May 2013, after suspension from 22 April. 108,519,329 shares will trade; 19,450,518 shares are escrowed for 24 months.

listing compliance notice

Byron acquisition completed and raising closed at $14.5m ($8.25m placement, $6.25m entitlement), including the full $2m oversubscriptions, above the $12.4m target. Expected 127,969,847 shares and 37.4m options on issue. Company renamed Byron Energy Limited.

business combination

The entitlement offer closed fully subscribed on 17 May, raising $6.23m from 15,577,374 shares at $0.40, each with 0.4 unlisted options at $0.50 expiring 31 December 2016. Meets the minimum condition for the Byron deal.

capital raising announcement

Chairman Kemp, MD Harry and director Clarke resign, as does company secretary Symons. Doug Battersby (chairman), Maynard Smith (CEO), Prent Kallenberger (COO), Charles Sands and Paul Young join, with Nick Filipovic as secretary, ahead of the Byron deal.

director officer appointment

Trojan proposes to buy Byron Energy Pty Ltd, holder of 16 Gulf of Mexico leases, for 84.0m shares and 25.3m options, with a $12.4m raising at $0.40 (min $11.2m). It would rename itself Byron Energy. This is the oil and gas deal Trojan had flagged; shareholder vote around 22 April.

business combination

Trojan says talks on a significant oil and gas acquisition, which would have involved a capital raising, ended because the vendors accepted another group's private funding offer. The vendors bore all costs, and Trojan stays a listed investment company.

other

The CMI settlement is complete: Trojan received $2,876,600 for its shares plus $515,000 for costs, and has about $3.9m cash. It declared a 13.5c fully franked dividend, paid 10 July, and says it returns to being a listed investment company. Directors' fees were cut again.

dividend declaration

CMI shareholders approved the selective capital reduction. Trojan expects $2,876,600 for its 3,028,000 CMI shares on 13 June 2012, then $515,000 in costs contributions, after which the proceedings are dismissed. Clears the main settlement condition.

other

Trojan conditionally settles the CMI litigation. CMI would buy back all Class A shares at $0.95 each, subject to CMI shareholder approval, and CMI and the other respondents would pay $515,000 towards Trojan's costs. The trial is adjourned to 1 July 2012. This resolves the dispute if completed.

material agreement

Trojan has sued CMI, its late former managing director's estate, current directors and associates in the Queensland Supreme Court, seeking a CMI wind-up and damages for oppression. CMI is over 50% of Trojan's net assets. Escalates the earlier wind-up requisition.

other

EGM address: the $0.72 payout ends the asset-sale and capital-return program, leaving about $2.3m net assets and 7.8m post-consolidation shares. The board plans to continue as an investment company, is in talks with a strategic investor, and will pursue CMI's directors legally. Managing director's salary falls to $36,000.

other

Notice of meeting for 15 June 2011: a $0.72 per share payout ($0.5973 capital return plus $0.1227 partly franked dividend), paid 8 July, and a 1-for-4 share consolidation. Delivers the capital return promised in April.

capital raising announcement

Trojan completed the sale of its GEO holding in March, leaving $27m cash and two small investments worth $2.6m. It intends to return about $0.70 per share in early July 2011. This resolves the GEO auction thread.

asset acquisition disposition

Trojan sold over half its GEO holding (38m units left) and bought back 8.7m of its own shares for $6.5m since February; shares on issue are now 39.9m. It criticises CMI's board for halting Class A dividends and will explore legal options.

asset acquisition disposition

Trojan plans to sell its 85.4m GEO units (19.99%, 46% of assets) via a descending-price ASX auction from mid-February 2011, starting at 25c and falling 1c a week to 20c. Unsold units would be withdrawn, with an in-specie distribution one option. Trojan can vary or skip the auction.

asset acquisition disposition

Maverick's $10m IPO at 20c completed, so Trojan's US$3m notes converted into 22.8m Maverick shares plus $388,205 cash. This resolves the long-impaired note thread; a $4.25m uplift on the A$700,000 carrying value is expected in next NTA at 20c.

asset acquisition disposition

NTA fell 2.4 cents to 57.2 cents at 30 November 2009. CMI's proposed Class A buyback at 63c failed at the separate Class A meeting, so Trojan keeps its CMI holding and that exit is gone.

other

Shareholders approved the wind-up on 31 August: Trojan buys its manager for 3.5m shares and pays a 33c per share capital return ($16.3m) on 14 September. NTA rose 18% to 92.0 cents; pro forma NTA after the return is 55.3 cents.

security holder rights change

NTA was 75.9 cents at 30 June 2009. The Buru 25c proposal was terminated in June, removing a near-term exit. The $4.9m deferred tax asset was removed because the wind-up plan makes using the losses improbable. CostaExchange balance of $3.8m was received 3 July.

other

Manager TIMPL, controlled by MD Troy Harry, proposed that Trojan buy it for 3.5m shares, return at least $0.25 per share, then sell the rest over 12-18 months and return the proceeds. Independent directors are positive but await an expert's report. Shares had traded at a 40-60% discount to NTA.

business combination

Trojan agreed to sell its 5,675,000 CostaExchange shares at $0.75, for $4.26m (about 13% of net assets). A 10% deposit is received, with the balance due 3 July 2009.

asset acquisition disposition

NTA was flat at 84.7 cents after a further $1.4m write-down of Maverick notes to 30% of face value; Maverick missed its 1 May interest payment (notes due 1 Nov 2009). Buru received a 25c takeover proposal; Trojan holds 12.5m shares and supports it absent a higher offer.

other

ARC Energy's merger with AWE completed in August 2008; Trojan received mostly cash plus AWE and Buru Energy shares. All borrowings were repaid and cash is over $10m. NTA is 109.0 cents.

asset acquisition disposition

Full-year result: net loss $5.85m, down from a profit last year, NTA $1.09 against $1.29. No final dividend, with the 2 cent interim already paid. Directors say they will resume dividends when legally able and prudent.

annual report

Agreed to buy 40,080,158 units in Geo Property Group from The Premium Income Fund at $0.255 each, $10.22m total, partly debt funded. Also pays the seller 40% of any profit on later sales. GPM's NTA is quoted at $0.85.

asset acquisition disposition

Half-year to December 2007: net loss after tax $2.38m (5.3 cents per share), reversing the $6.49m profit a year earlier, as the market's record run ended. NTA $1.19 per share, cash $3.5m. A 2 cent interim dividend is declared.

half year report

After-tax NTA rose to 124.4 cents at 31 October 2007, but shares trade at $1.00, a record discount to NTA. The board announced an on-market buyback; $8.8m from the Lipa scheme was received after month-end, and a large CostaExchange stake was bought.

other

Subject to shareholder approval, will raise $16.77 million by placing 13 million shares at $1.29, each with a $1.00 option expiring June 2008. Funds are already held in escrow; shares on issue would reach 42.09 million.

capital raising announcement

Raised $11.7 million from early exercise of 11.7 million June 2008 options at $1.00, allotted 20 September so holders get the 6 cent dividend. Shares on issue rise to 28,353,001; 4,981,000 options remain.

capital raising announcement

Year to June 2006: profit after tax of $4.06 million after a $1.15 million performance fee, and a 44.5% pre-fee, pre-tax return. Maiden 6 cent fully franked dividend (about $1 million) is payable 4 October 2006, up from no dividend previously.

dividend declaration

Raised $1.38 million by placing 1,162,000 shares at $1.19 each, with a free option per share (exercisable at $1.00 until 17 June 2008). The cash goes to further investing; the placement had no costs.

capital raising announcement