Why Investors Are Eyeing The Oil And Gas Explorer Byron Energy?

  • Apr 09, 2019 AEST
  • Team Kalkine
Why Investors Are Eyeing The Oil And Gas Explorer Byron Energy?

The Melbourne, Australia-based Byron Energy Limited (ASX: BYE) is engaged in development, exploration, and production of oil and gas properties. The company has working interests in a broad asset portfolio comprising leases situated in the Gulf of Mexico and transition zone, including the State Waters and adjacent coastline in the United States.

Byron’s current market valuation stands at around AUD 208.61 million with ~ 695.37 million outstanding shares. On April 9th, 2019 at 03:25 PM AEST, the BYE stock is trending on the market at AUD 0.295. Besides, BYE has also generated an impressive YTD return of 42.86% so far.

On April 1st, 2019, the Board of Metgasco Limited (ASX: MEL) announced to have remitted Byron Energy (the company), the South Marsh Island Block 74 (SM74) lease operator, USD 4,393,590 as its share of budgeted drilling costs for the SM74 deviated well, representing 40% of the current well AFE (USD 11,419,400) minus amounts billed to date.

Going forward, Metgasco plans to update the market on an expected spud date shortly. Metgasco is a Sydney-based energy company engaged in gas exploration and also develops and invests in associated energy infrastructure.

Recently, Byron also executed a non-binding Letter of Intent (LOI) with the SM69 leaseholders for the drilling of an SM69 E2 well, off the newly acquired E Platform, that will target ~ 2.0 million barrels of oil + 2.3 billion cubic feet of gas within a prospect immediately adjacent to the SM58 E1 productive area. Through the provision of 100% funding of the well, Byron will earn full working interest and 80.33% of the net revenue interest until E2 Project Payout.

Previously on February 14th, 2019, Byron also announced to have closed the acquisition of SM58 and associated SM69 E area assets for a consideration of USD 4.25 million with an effective date of January 1st, 2019 and later outlined future drilling opportunities and prospective resource potential on the SM58 lease block in their announcement of March 18th, 2019.

Besides, Byron Energy Inc, a wholly owned subsidiary of the Company, quoted the highest bid of USD 187,654 on SM60 at the Gulf of Mexico, Outer Continental Shelf Lease Sale 252 held in New Orleans, Louisiana on Wednesday, March 20th, 2019. It is subject to the review of Bureau of Ocean Energy Management and may take up to 90 days.

Byron has been on an expansion drive to identify and acquire highly prospective oil and gas plays while consistently reporting progress on the same.

For the half-year ended December 31st, 2018, the company reported a fairly good financial performance the net profit after income tax of USD 7,588,142, a stellar improvement on the loss of USD 4,828,951 recorded in the prior corresponding period (PCP) ended December 31st, 2017. The turnaround can be attributed to the commencement of oil and gas production at SM71 lease in late March 2018 that generated USD 17,222,013 of net revenue.

At the end of the period, the net assets were valued at USD 37,831,054 including cash and cash equivalents of USD 6,094,510.


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