Otto Energy's latest drilling update

Otto Energy (ASX:OEL) has announced progress on the F5-ST Bypass well at the South Marsh Island 71 lease in the Gulf of Mexico. The well was successfully drilled to a depth of 7,219 feet, uncovering significant hydrocarbon pay in multiple sand intervals. Otto Energy plans to complete the well as a producing asset.

Otto Energy's strategic drilling advancements

Otto Energy has made substantial progress on the F5-ST Bypass well in the Gulf of Mexico, identifying significant hydrocarbon pay in key sand intervals. The well will undergo completion with an estimated additional cost of $3 million, and production is expected to start in November. Otto Energy, alongside Byron Energy, holds a 50% interest in the SM 71 lease. This development aligns with Otto Energy's strategy to enhance its production portfolio in the US Gulf Coast, reinforcing its commitment to leveraging its diversified asset base for long-term growth.

Executive insights from Otto Energy

Phil Trajanovich, Acting CEO of Otto Energy, expressed confidence in the economic viability of the well despite the additional drilling and completion costs. Production is anticipated to commence in November.