Otto Energy is set to complete the OCS G-34266 #F-2 well (SM 71 F2) within the South Marsh Island 71 (SM 71) lease in the Gulf Of Mexico Shelf, US, preparing the site for near-term production in the B65 Sand.
The JV has also approved the drilling of the F3 development well, which is expected to spud next week in an attempt to provide a second take point in the D5 sand zone.
Otto Energy managing director Matthew Allen said: “The ability to accelerate significant production and value through the production from two different sands in three development wells on the SM 71 field will provide a long-term and stable cash-flow base for Otto.
“The near-term completion of the SM 71 drilling programme and the start of production in early 2018 provides the ability for Otto to continue expanding its portfolio of opportunities in the Gulf of Mexico focus area.”
Last month, the SM 71 F2 appraisal well encountered four hydrocarbon bearing sands, including the B65 and D5.
The companies have decided to case the F2 well to a depth of 7,700ft measured depth (MD), 130ft MD below the base of the B65 Sand.
According to Otto, the F2 well will now be used as a ‘take point’ to produce hydrocarbons from the B65 Sand.
Furthermore, it is understood that the F2 well can also be used in the future to produce J1 Sand and B55 Sand once production is suspended in B65 Sand.
The JV plans to use the SM 71 F3 well as a D5 development well.
Initial production from SM 71 field is now expected to begin in early March this year.