15 Jan 2019production update▲ GoodMajor
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.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
21 Dec 2018production update▲ Good
SM71 pressure testing shows water support from the aquifer, and F1 and F3 appear connected in one reservoir. F2 is stable at 165 bopd after a gas-lift change, which resolves the earlier instability. The field makes 2,900 bopd and 7.25 mmcf/d gross; payout is expected within a year of first production.
29 Nov 2018security holder rights change● Neutral
Byron issued 9.5m unlisted options at A$0.40, expiring 31 December 2021, for nil consideration to executive directors, senior managers and consultants. This completes the grants approved at the 22 November AGM.
17 Oct 2018production update▼ Bad
The SM71 F2 recompletion to the B55 sand is finished. It flowed 382 bopd initially, but after sand control the well is struggling to unload fluids and is now flowing an unstable 150-200 bopd. Byron expects it to stabilise over a couple of weeks.
15 Oct 2018contract award▲ GoodMajor
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.
15 Oct 2018other● Neutral
Corporate governance statement for the year to 30 June 2018, measuring practices against ASX recommendations. Administrative; no new business information.
15 Oct 2018annual report● Neutral
The 2018 annual report repeats known facts: SM71 producing about 3,600 bopd, 2P reserves of 29.3 MMboe, and net revenue of US$9.5m for the year. The chairman cites a market value of A$243m at 30 June.
15 Oct 2018contract award● Neutral
Partner Metgasco repeats Byron's news that the White Fleet Drilling 350 rig is contracted for a February 2019 SM74 spud. Metgasco holds 30% WI (24.37% NRI) and pays 40% of the roughly US$11m dry-hole cost. Nothing new.
15 Oct 2018other● Neutral
Appendix 4G, the key to Byron's corporate governance disclosures, lodged with the annual report. Administrative notice with no business substance.
11 Oct 2018drilling result▼ Bad
Partner Otto repeats Byron's report that Weiss-Adler No. 1 was non-commercial and is being plugged. Otto holds 40% and funds 53.33% of the first US$10m of costs. Cost is under US$7.5m. Nothing new on Byron.
11 Oct 2018drilling result▼ BadMajor
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.
5 Oct 2018drilling progress report● Neutral
Weiss-Adler No. 1 at Bivouac Peak has a 9 5/8-inch liner cemented at 14,422 ft and is drilling ahead at 14,856 ft MD, toward the 18,294 ft target. Byron holds 43%. No result yet.
5 Oct 2018drilling progress report● Neutral
Partner Metgasco repeats Byron's update: Weiss-Adler No. 1 is drilling ahead at 14,856 ft, with the liner set at 14,422 ft, and on target for about 75 days. Metgasco holds 10%. No new Byron information.
27 Sept 2018production update● Neutral
Recompletion of the SM71 F2 well to the B55 sand has begun, with a liftboat on site from 25 September. Permits were approved. Work is expected to take up to three weeks and cost about US$1.1m gross, as previously flagged.
26 Sept 2018security holder rights change● Neutral
Metgasco received 3,766,479 Byron shares from converting A$1m of its convertible notes, as announced on 19 September. It now holds 41,663,479 Byron shares, or 6.05%, and A$3m of notes remain.
25 Sept 2018annual report● Neutral
Full-year statutory accounts for the year to 30 June 2018 are lodged. The visible text is the contents page and director biographies; the financial figures are truncated, so no results can be stated here.
24 Sept 2018drilling progress report● Neutral
Weiss-Adler No. 1 has 11 7/8-inch casing cemented at 11,890 ft MD and is drilling ahead at 13,918 ft toward 18,294 ft. Byron holds 43%. Still on track, with no result yet.
24 Sept 2018drilling progress report● Neutral
Partner Metgasco repeats Byron's update: Weiss-Adler No. 1 is drilling ahead at 13,918 ft with casing cemented at 11,890 ft, on target for about 75 days. Metgasco holds 10% WI. No new Byron information.
21 Sept 2018asset acquisition disposition▲ GoodMajor
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.
19 Sept 2018material agreement● NeutralMajor
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%.
19 Sept 2018investor presentation● Neutral
September 2018 investor presentation. The visible text is a disclaimer and capital structure: 685 million shares, A$191.8m market cap at 18 September, US$2.26m cash at 30 June. The rest is truncated; it appears to repeat known facts.
19 Sept 2018material agreement● Neutral
Partner Metgasco confirms the SM73 platform agreements are executed and SM74 spud is now February–April 2019. Its cost to reach total depth is about US$4.4m for 30% WI. It expects Weiss-Adler results in Q4 2018. No new Byron information.
19 Sept 2018production update● Neutral
SM71 produced about 641,737 barrels of oil and 556 million cubic feet of gas cumulatively. Output has settled at 3,600 bopd and 6.0 mmcf/d gross, down from about 4,000 bopd in early August. F2 recompletion to the B55 sand is due late September, at about US$1.1m gross.
19 Sept 2018security holder rights change● Neutral
Byron plans to grant 2.1 million options each to the CEO and two executive directors, plus 3.2 million to other staff and consultants. These are A$0.40 options expiring 31 December 2021, subject to shareholder approval at the AGM. The exercise price is a 43% premium to the 28 cent close.
19 Sept 2018security holder rights change● Neutral
Metgasco elected to convert A$1m of its remaining A$4m Byron convertible notes into Byron shares at a 10% discount to the 30-day VWAP. The rest of the notes stay in place. It also reports Weiss-Adler casing set at 11,890 ft.
19 Sept 2018resource reserve update▲ GoodMajor
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.
19 Sept 2018other▲ Good
CEO letter says Byron ranks 12th of 119 Gulf of Mexico shelf oil producers on two months of output, from 50% of one project. It lists 31 drill-ready prospects and about two years of near-continuous drilling. It says the aim is to fund this from cash flow rather than raise capital.
19 Sept 2018production update● Neutral
Partner Otto repeats Byron's SM71 update: 3,600 bopd and 6.0 mmcf/d gross, and the F2 recompletion to the B55 sand in the last week of September. No new Byron information.
4 Sept 2018drilling progress report● Neutral
Weiss-Adler No. 1 has 16-inch casing cemented at 4,040 ft MD and is drilling ahead at 4,900 ft, on the way to 18,294 ft MD. About 75 days total is still expected. No result yet.
4 Sept 2018drilling progress report● Neutral
Partner Metgasco repeats Byron's update: Weiss-Adler No. 1 is drilling ahead at 4,900 ft with 16-inch casing cemented at 4,040 ft. Metgasco holds 10% WI. No new Byron information.