Byron Energy Ltd. struck oil and gas in the U.S. Gulf of Mexico (GoM) in its latest well located on South Marsh Island Block 71 (SM71), the company said in a recent news release.

The Australian-based company is solely focused on the shallow waters on the Outer Continental Shelf in the U.S. GoM.

Byron’s latest well, SM71 F4, was flowing at a rate of 8.3 million cubic feet per day of gas. Production had a low liquid yield and a flowing tubing pressure of 2,530 psi on a restricted 25/64 inch choke. The well had been on production for five days, as of the March 17 release.

Commenting on the discovery, Byron CEO Maynard Smith noted the initial flow rates of the SM71 F4 well are consistent with other wells that logged both gas and oil in the section.

“It’s interesting to note that the F4 gas production, at today’s oil and gas prices, is economically equivalent to about 500 barrels per day of oil,” Smith added in his statement.

Byron is the operator of SM71. Partner Otto Energy Ltd. elected not to participate in the SM71 F4 well, giving Byron a 100% working interest with an 81.25% net revenue interest.

In a separate release, Byron said drilling of its operated SM71 F5 well remains on schedule. The entire drilling operation is expected to take 25 days with an additional 14 days needed for completion operations.

Byron has a 50% working interest and 40.625% net revenue interest in the SM71 F5 well. Otto holds the remaining interest.