Oyster Bayou - Castex

Location

The Oyster Bayou project is located in different regions, but the specific focus here is on the Oyster Bayou South prospect:

The Oyster Bayou South prospect is situated in Terrebonne Parish, Louisiana, in the offshore state waters of the Gulf of Mexico.

The Oyster Bayou South prospect is operated by Castex Energy, Inc., although Otto Energy holds a significant working interest.
- Otto Energy has a 30% working interest and a 22.65% net revenue interest in the Oyster Bayou South project.

Discovery and Production: The Oyster Bayou South exploration well A0391 #1 was spud on June 27, 2022, and drilled to a target measured depth of 14,137 feet (or True Vertical Depth of 13,064 feet). The well encountered 68 feet of true vertical thickness (TVT) of Miocene pay, which is consistent with pre-drill expectations. Production commenced in September 2022.
Geological Formation: The discovery is in the Miocene formation, which is known for gas and liquids-rich reservoirs in the Gulf of Mexico region.

Initial Production: The well is scheduled for production, with the first production starting in the fourth quarter of 2022. As of the end of the fiscal year 2022, the project had commenced production.

Development Costs: Otto Energy developed the Oyster Bayou South project at a cost of approximately $7 per barrel of oil equivalent (boe), which is part of their capital investment framework aimed at keeping costs low.
Production Costs: The Gulf of Mexico region, where this project is located, is known for low production costs due to the high density and availability of production platforms and extensive technical data available.

Partners: The project involves a partnership between Otto Energy and Castex Energy, with Castex Energy operating the wells.
Other Projects: Castex Energy is also involved in other projects in the region, including CO2 storage initiatives and midstream operations.

Castex Energy Profile: Castex Energy, Inc. operates wells and properties across Louisiana, Pennsylvania, and Texas. They have a long history of production dating back to June 1988 and have produced significant amounts of oil and gas.
CO2 Storage Initiatives: While not directly related to the Oyster Bayou project, Castex Energy is involved in CO2 storage projects in the region, which could be relevant for future environmental and operational considerations.