Byron Energy Limited provided an update on its operated South Marsh Island projects in the Gulf of Mexico, USA. The Enterprise Offshore Drilling 264 (EOD 264) arrived on location to drill the SM71 F4 well from Byron's SM71 F Platform and has jacked up to working height and equipment loading is underway. Current operations are driving 24 inch drive pipe to proper depth before rigging up diverter lines and other equipment in preparation of spudding the well. The SM71 F4 well is designed to test an Upper D5 Sand seismic event outboard of the primary D5 producing area where the SM71 F1 and F3 wells have been in production since March of 2018. Drilling of the SM71 F5 well will be contingent on the results of the SM71 F4 well. Further progress reports will be provided as operations continue. The SM71 F4 well will be drilled to a depth of 8,180 Measured Depth (7,615 True Vertical Depth) and is expected to take 25 days to drill and evaluate. Byron, through its wholly owned subsidiary Byron Energy Inc., is the operator of SM71 and currently has a 50% working interest ("WI") and a 40.625% net revenue interest ("NRI") in SM71. Otto Energy Ltd. ("Otto") holds the remaining interest in SM71. Over the past twelve months, the SM71 lease ranked fourth in total oil production amongst all producing leases on the Gulf of Mexico shelf in water depths up to 400 feet. On 23 January 2020, production from the D5 Sand surpassed 2 million barrels of oil and 2.8 billion cubic feet of natural gas in less than two years with no formation water observed to date. Production from the Byron operated SM71 F1, F2 and F3 wells continues at steady daily rates after installation of a new compressor in December 2019. Platform production was shut-in on 7 December for construction work. The SM71 F3 was returned to production in less than three days producing through the high-pressure production system. Both the SM71 F1 and F2 wells were shut-in a total of seven days. The installation work was carried out on budget and crews were demobilised on 12 December. Construction work on the future SM58 G platform is ongoing in Abbeville, Louisiana and remains on schedule for installation in June 2020. Structural work to the jacket portion of the platform is in progress and painting and coating of the deck portion is complete. The next construction phase will focus on interconnect piping. All production equipment is being refurbished and will be reinstalled along with instrumentation and electrical work over the next three months. When completed and installed, the SM58 G platform will be capable of handling 8,000 barrels of oil per day, 80 million cubic feet of natural gas per day and 8,000 barrels of water per day. As previously reported, in early October 2019, Byron completed the drilling of SM58 G1 well (formerly SM58 011 BP01 well) which was drilled to test Byron's Cutthroat Prospect that had been identified and evaluated using high-tech Reverse Time Migration, Vector Image Processing and Full Waveform Inversion 3D seismic processing. The SM58 G1 well encountered a true vertical thickness net pay of 301 feet in the Upper O Sands. Mud log data indicated a total hydrocarbon bearing interval thickness in the Lower O section of between 180 and 250 feet. Due to hole conditions, the Lower O Sand interval was not logged in the SM58 G1 well and will be the primary target of a future well. The SM58 G1 well was mudline suspended so that it ultimately can be completed and placed on production when the G platform is set later this year. In order to carry out the drilling program outlined in Byron's November 2019 investor presentation, the Company has executed a drilling contract with Enterprise Offshore Drilling to utilize the EOD 264 mat jack up rig to drill four new wells and complete all successful wells drilling during the program along with completion of the SM58 G1 well. The contract calls for the EOD 264 to be released to Byron after 15 May 2020, subject to its availability. The well will be drilled under a joint exploration agreement between Byron and the leasehold interest owners of SM69. By funding 100% of the well Byron will earn 100% WI and 80.33% NRI until E2 Project Payout, at which time and at the leaseholder's election, Byron's NRI will either adjust to 76.33% OR the leaseholders can convert to a 30% WI and Byron's interest in the project would adjust to 70% WI with an unburdened 58.33% NRI. If the SM 69 E2 is successful, first production from the well is expected within three to six months after completion.