In 2015, Talos Energy along with other major oil companies; Premier Oil and Sierra Oil and Gas were awarded a tender to start offshore oil exploration in the Mexican waters. Led by Talos Energy, the companies started the exploration on 21st May 2017, and the exploration is expected to take 90 days. The prospecting which has been named as the Zama-1 well which is situated in Suraste Basin off Tabasco State is expected to cost $16 million and will produce an estimated 100million to 500 million of crude oil. Premier oil will cover the drilling cost.
The three companies had agreed to share the venture proportionately. The well will be operated by Talos Energy which has a 35% stake in the venture. Sierra Oil and Gas is the largest shareholder in the venture owning 40% stake in the venture while Premier has a stake of 25%.
This exploration marks an important era in the Mexican oil industry hence it has sparked a lot of attention from local and international investors, and it is keenly watched. In a statement of one of the interested parties, Edison Investment Research Ltd.’s analyst Elaine Reynolds told clients that the project would be under a keen watch as it is the first of its kind and it has high chances of success.
In a separate statement, Canaccord Genuity Ltd.’s analyst Charlie Sharp said that exploration is of much interest due to its implications in the Mexican market.
About Talos Energy
Talos Energy is a privately-held gas and oil company based in Houston, Texas. The company majorly focuses its investment in exploring and acquiring oil and gas properties along the Mexican Gulf and the Gulf Coast.
The company’s portfolio is affiliated with Apollo Global Management, Riverstone Holdings LLC, and Talos Management. The company has had many successful deals one of them being the first private company to be awarded a tender to explore Mexican oil.