Byron Energy has begun production at the South Marsh Island Block 71 (SM71) oil development in shallow water from the Gulf of Mexico.

The development comes after the company has been engaged in activities related to the production startup on its operated wells drilled on SM71.

The company opened the SM71 F1 well to the production system on the SM71 F platform last week and within five hours, it started producing at rates close to 2,000 barrels of oil per day (bopd).

Since then, the well has been producing at a controlled rate, with recent test data indicating a rate of 2,118bopd.

Byron Energy CEO Maynard Smith said: “To say we are extremely pleased with the rates from the SM71 F1 and F2 wells would be an understatement.

“We expect the facility issues to be easily resolved this week and then we can establish appropriate rates prior to bringing on the F3 well when it is ready.”

“The observed rates are toward the upper range of our expectations for each well. Both wells have come into production easily, which is the sign of both a high-quality reservoir and a very good completion.

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“We expect the facility issues to be easily resolved this week and then we can establish appropriate rates prior to bringing on the F3 well when it is ready.”

On 25 March this year, the company opened the second well, F2, to the system and within five hours the well started producing at 1,944bopd as per test data.

The company is currently engaged in operations to remove stuck completion tools from the F3 wellbore.

Once the completion is finalised, the company will place the well into production with the other two wells.

SM71 is owned by Byron Energy and Otto Energy in a 50/50 joint venture.