The Byron Energy Ltd (ASX: BYE) share price has today soared higher following a strong operations update published by the company. The Byron share price was up 10.3% to 21.5 cents in intraday trading before edging back to its current price of 21 cents, at the time of writing.
What Byron Energy does
Byron's business was established in 2005 and is focused solely on the outer Continental Shelf in the Gulf of Mexico. The company participates in the identification, analysis and leasing of suitable oil and gas prospects. The Byron team boasts extensive geological, geophysical and operational expertise in developing and operating properties in that region.
To this tune, Byron has a portfolio of operated and 100% working interest properties in the Gulf of Mexico, many of which are oil prone.
Operations update
The Byron share price has today been buoyed by positive drilling and pipeline activities. The company announced that it has completed operations on the Upper Sand in the SM58 G1 well. This is positive progress for the company as it aims to get the G1 well into production by 1 September. The well will be placed into production after all pipelines are operational and are tied into the production facility.
Also in the SM58 region, it was announced that the G2 well has begun drilling. The drilling is set to occur over a section where strong mudlog oil and gas amounts were observed.
As mentioned above, in order to get the operation underway, pipeline installation and topside work is necessary. Operations to lay all necessary oil and gas pipelines are now complete and the lines are currently being buried beneath the seafloor. However, the next phase of the project will entail making the pipeline connections to the platform risers. This is expected to be completed later this week.
CEO, Maynard V. Smith had this to say regarding the SM58 project:
"Our team implemented a very complex tie back and completion program in the G1 well with no operational issues. The fact we accomplished this task ahead of schedule and under budget is a direct result of exceptional upfront planning and excellent offshore execution."
Foolish takeaway
The Byron share price has been a casualty of falling oil prices. This has seen the company's share price fall to a low of 10.5 cents during the pandemic. However, the recent rebound in oil prices has been driving the Byron share price higher, with experts stating the upturn isn't over yet.
Company shareholders will be hoping that this, along with strong management, can elevate the Byron share price to its former highs. However, despite the recent good news, this is still a long way off as the Byron share price sits at 21 cents – well below its 52-week high of 39 cents.
