Otto Energy has advised that it has received the independent resources report on the Bivouac Peak opportunity onshore Louisiana from Operator, Byron Energy Limited. The independent resource estimate for Bivouac Peak was prepared by Collarini Associates (Collarini), based in Houston.
A summary of the estimate of prospective resources for Bivouac Peak is set out below and represents a significant increase to those previously reported.
As advised to ASX on 7 July 2016, Otto exercised its option to enter into the Bivouac Peak acreage with Byron. As part of this option exercise, Otto has the ability to earn a 45% working interest (33.525% net revenue interest) through the funding of 60% of the costs of the first well drilled at Bivouac Peak. Any costs above US$6 million (Otto share) in respect of the first well and all future expenditure will be in accordance with Otto’s participating interest (45%). An initial test well is planned at Bivouac Peak in 2017.
Otto’s Managing Director, Matthew Allen said:
“The onshore Louisiana Bivouac Peak acreage adds significant prospective resource potential to Otto’s exploration portfolio. High quality 3D seismic data has been used to define an increased prospective resource potential and Otto is working with the Operator, Byron to finalise the technical work streams ahead of committing to drilling in 2017. Having made an initial discovery with Byron at SMI-71, Otto looks forward to expanding its portfolio with follow up drilling at Bivouac Peak.”
LR 5.36 re Bivouac Peak
Bivouac Peak Prospective Resource has increased from 3.1 million boe and 34.6 billion ft3, net to Ottto, at time of initial release of Prospective Resource for the project (OEL ASX release dated 11 December 2015, based on Byron Energy Limited’s internal estimate and released to ASX on 5 November 2015) to 5.361 million bbls and 59.562 billion ft3, net to Otto, as at 30 June 2016, based on estimates by Collarini Associates, post exercise of farmin option by Otto. The increase is mainly due to additional 3D seismic data licensed and evaluated over the Bivouac Peak lease area. This data has documented a deeper prospect on the acreage that has increased the Prospective Resource expectations for the Bivouac Peak project. In addition, further analogue work was undertaken on the initial prospect areas which resulted in upgraded reserve expectations.
Adapted from a press release by Louise Mulhall
Read the article online at: https://www.oilfieldtechnology.com/exploration/25072016/otto-energy-independent-prospective-resource-for-bivouac-peak/