Otto lost some tools down a well and now they’re fishing them out
Otto Energy has been hard at work trying to recover some tools they lost down an oil well.
Nine days ago Otto’s partner and operator Byron Energy (ASX:BYE) got its completion tools stuck in a Gulf of Mexico well offshore from Louisiana.
Completion is the process of making a well ready for production.
A drill-pipe became stuck across the gravel packer — a piece of equipment that stops sand from clogging up the well — leaving the drill pipe and other equipment in the well.
“Fishing operations” were successful on Thursday as the key “service tool” part of the kit was pulled out.
Otto (ASX:OEL), which has a 50 per cent stake in the project, says getting the tools out of the well bore intact was “an important step” as they moved forward with the well.
Furthermore, “the recovery of the service tool is significant” because it means they can get the gravel packer out with tools they have to hand.
The Gulf of Mexico is the first oil to be produced by the company since it sold off its producing fields in the Philippines in 2015.
Paul Senycia, Otto’s vice president of exploration, says all going well they should be flowing first oil from the F1 well today, followed by the F2 well once they’re comfortable with the first.
The troublesome F3 well should be up and running in a well.
Otto closed on Thursday flat at 5.9c.