Ann: Byron High Bidder on 3 Blocks at GOM Lease Sale 251, page-4

Hi 6186mark,
I suppose the real question is do I think Byron is undervalued at 0.28 ATM.

The answer to that is yes, definitely.

There is a lot of selling being done by the impatient lately, and this is patiently being bought up by the patient.
Anyone reading all the information from Byron's web site will see that Byron is about increasing shareholder wealth and the directors have over 20% of the company shares, so they have real skin in the game and are not paying lip service.

This wealth will not come overnight, but by watching how they are moving towards this target is the key.
The right people in Byron have over an 80% drilling success rate in GOM, and if we look at their GOM prospect holdings, they are drilling them in use by date order.

I believe their tactic may be to have as many prospects as they see potential in, farm in and drill each and everyone they view as profitable, then, after these holdings are on production the clock stops, and they can come back and infill drill the other targets in those prospects at their leisure.

If we take SM71 for example, after the initial drilling discovery in 2016, the production went from using another companies platform, to our own platform , to a maned Platform.
Why, because i believe they knew at that stage, the potential for SM71 was going to be larger and greater than it was then, and is now.
The B65 sands were never targeted in the number 2 well which was designed for the D5, but because of the D5 well down hole problems, was used to produce from the B65 sands - and did initially, at 1500 BOD and then choked up.

But remember, this well was serviced by a drill ship to insert sand control measures at the beginning of production, so Byron knew what they were in for before commencing production, and took the appropriate measures, possibility knowing that this well had only just penetrated a isolated or partially connected satellite section of the B65 sands.

B65 has since ceased production, and will be drilled at a later date when a better well design is made for this section, but has probably more that paid for itself in that time, and with a Initial rate of 1500 BOD on a partially connected satellite section, one has to wonder what the rate per day will be when optimally drilled.

Another company may have written of the cost of this well, plugged and abandoned it, and then looked for more share holder funds to develop further- but when you have your own money at stake, you endeavor to get a return on your investment when ever and where ever possible.

Now we have, the j, and B55 sands being targeted for production shortly, as these are smaller producing sections and will be ideal to top up the 500 BOP capacity we have at the SM71platform.

Then, when the upgraded reserves report for ALL of SM71 and others is available, and the new seismic has revealed a better understanding of the structure, maybe another platform will be brought into the area to produce from.

In the meantime Bivoac Peak is being prepared to be drilled, and progress is underway for SM74 to be drilled.
If these are successful and are then bought on to production we will see a faster pace of development in the other prospects that we have.
So, if oil stays within a $60 + range, I believe Byron's current 0.28 cents value is very cheap and this is a company that looks after its investment opportunities.

Hope this helps.

IMO DYOR