- Byron Energy's (BYE) shares have plummeted following an update on its South Marsh Island Block 58 G2 well
- Final drilling was completed at the well over the weekend, and it has officially been deemed non-commercial
- Byron now plans to sidetrack the SM58 G2 well to test the Upper O Sand in the Brown Trout Prospect
- Shares in BYE have dropped over 30 per cent since the market opened
- Currently, shares in Byron Energy are worth 19.5 cents each and trading down 31.6 per cent
Oil and natural gas explorer Byron Energy (BYE) has seen its shares plummet since the company released a less-than-positive update on its South Marsh Island Block 58 G2 well.
Specifically, Byron revealed recent drilling at the SM58 G2 had finally wrapped up and unfortunately the well had been deemed non-commercial.
The company's CEO, Maynard Smith, explained the drilling results were consistent with a failed geologic seal for the Lower O Sand fault trap.
"The G2 well tested a high-quality seismic amplitude that had been tied to strong mudlog shows in the G1 well drilled last year, but we were unable to acquire electric logs at the time due to adverse hole condition," he said.
"Now, a year later, we have fully tested the play and unfortunately found it to be a low hydrocarbon saturated sand," he added.
The SM58 G2 well is located in the shallow waters of the Outer Continental Shelf and Transition Zone of the U.S. Gulf of Mexico, offshore of Louisiana.
Following the non-commercial result, Byron said it plans to pivot its focus and sidetrack the SM58 G2 well to test the Upper O Sand in the Brown Trout Prospect.
"While we are disappointed by this setback, we are in the fortunate position to be able to sidetrack the G2 well to our Brown Trout Prospect which has a Collarini assigned 3P reserve of 1.6 million barrels of oil," Maynard said.
"The Byron team has documented over a dozen remaining opportunities on SM58 and adjacent leases, and despite this disappointment, we all remain determined to continue to execute our drilling program to realise our previously stated goals."
However, Byron Energy's share price has taken a battering since today's pre-market open announcement about the well, dropping over 30 per cent across Monday's session.
Shares in BYE last closed trading for 28.5 cents each on September 18, and opened today worth just 22 cents.
Currently, shares are trading down 31.6 per cent at 19.5 cents each at 3:45 pm AEST.