Byron Energy Limited provided the following update on the company's imminent drilling, future drilling, funding, and current production. On 1 February 2022, Byron announced it would drill two wells from the SM58 G Platform beginning in April using the Enterprise Offshore Drilling 264 (EOD 264) jack-up rig. The SM58 G3 (G3) will drill the Rainbow Trout prospect and the SM58 G5 (G5) will drill the Smoked Trout prospect (Attachment 1, page 1). Reactivation of the EOD 264 is on schedule for an early to mid-April start. The actual start date is subject to several things including final US Coast Guard inspection and certifications which are currently scheduled for March 28, weather conditions for both the reactivation work and for mobilization, and approval of the rig's condition by the Byron drilling engineers and third-party inspectors. Once those conditions are met,
the EOD 264 will be towed to location and work will begin. As a cost saving measure, Byron will "batch drill" the G3 and G5 wells by driving conductor pipe in each well, then drilling and cementing surface casing in each well before drilling the target sections in each well. The G3 and G5 wells are targeting combined 2P reserves* of 3.5 mmbo and 4.6 Bcfg with a target flow rate of gross 750 bopd per well. Byron has secured fully approved drilling permits for the G3 and G5 wells. Byron is in final discussions with EOD to contract a rig for a two well program with an optional third well commencing in January 2023. This future drilling program will include an exploration well on the Golden Trout prospect on SM70 (Attachment 1, page 2). If the SM70 well is successful, a new unmanned platform as a satellite facility tied back to the host SM58 G platform will be required and would lead to several future drilling opportunities from that location. Byron has filed the initial permit for a surface location on SM70 and expects it to be approved in the September quarter 2022. The second well in the first 2023 program would likely be drilled on either the Dolly Vardon or Steelhead prospects from the SM58 G platform while the optional third well will be decided based on results of the upcoming 2022 program and the initial well in the 2023 program (Attachment 1, page 2). It is forecasted that, based upon success with the G3 and G5 wells, these future drilling and completion costs will be funded from free cash flow. Major development capital for additional platforms and pipelines would be obtained from existing capital source relationships. Byron recently submitted an Authority For Expenditure (AFE) to its 50% working interest partner, Otto Energy, to recomplete the SM71 F2 well from the existing B55 Sand to the up-hole J1 Sand reservoir. The AFE was approved, and Byron has submitted permits for the F2 recompletion. In addition, Byron has submitted permits to perform remedial work in the SM71 F4 well, which is a 100% working interest Byron well, to reperforate the J1 Sand to establish a better oil rate after work on the well was initiated in late 2021. That result was hindered by a poor cement isolation packer that resulted in the plugging of the perforations. Both jobs will be undertaken with a liftboat which is expected to be available in late April 2022.