Otto Energy starts production at SM 71 F5-ST

Otto Energy (ASX:OEL) has commenced production at the SM 71 F5-ST Bypass well as of November 30, 2024. The well initially produced 1.2 million standard cubic feet per day (MMscf/d) of gas and 4 barrels per day (bbl/d) of oil. By December 12, production increased significantly, constrained by platform capacity.

Overview and outlook for Otto Energy's SM 71 production

Otto Energy has started production at the SM 71 F5-ST Bypass well, with promising initial gas and oil output. The production rate increased by mid-December but is currently limited by the platform's gas compressor capacity. The company aims to maintain a stable gas production rate between 2.5 - 3 MMscf/d from both F1 and F5 wells. The well has intersected a gas-bearing reservoir with potential for oil, although future oil rates are uncertain. Otto Energy and Byron Energy equally share ownership and revenue interest in the SM 71 lease. Otto Energy is cautiously optimistic, focusing on monitoring and optimizing production while navigating reservoir complexities.

Executive commentary on SM 71 F5-ST production

The initial production results from the SM 71 F5-ST Bypass well are encouraging, demonstrating the potential for a stable production rate. We will continue to monitor the well's performance closely to ascertain its full potential and ensure optimal operations within compressor limits.