A new oil discovery off the shores of Mexico in the Gulf of Mexico made by Talos Energy Inc. took a significant step forward recently when the Hydrocarbon Commission approved the appraisal plan for the well.
The well, known as ZAMA-1, was sunk in 2017 off the coast of Tabasco as part of a partnership operation between Talos Energy, Britain’s Premier Oil and the Latin American firm, Sierra Oil & Gas. The ZAMA operation was the first well drilled by non-Mexican private companies in the more than 80 years since Mexico nationalized petroleum industry.
Talos Energy will control a 35% stake in the well. Estimates are that the site may hold as much as two billion barrels of oil. Talos Energy is based in Houston and recently merged with Stone Energy Corporation. It also recently dried the ink on a deal for the acquisition of Whistler Energy II. Both moves have bolstered the cash base and infrastructure of Talos, positioning the company for robust growth and a solid operating foundation in coming years.
Talos Energy is helmed by Chief Executive Officer Tim Duncan. He called the approval of the appraisal plan for ZAMA “a significant milestone.” He made his comments following the completion of a pre-utilization agreement with Pemex. Duncan also said the agreement will help move actions forward more rapidly so that a second well and eventual extraction of oil from the site can began in earnest. Production of oil should began in 2022. Actual drilling is likely to commence by the end of 2018.
All this is welcome news for Mexico and it stagnant oil exploration industry. The fact that Mexico has finally allowed foreign partners to develop oil resources within its sovereign sphere shows that the country is eager to modernize and jumpstart the jobs, taxes and wealth that can be gained from exploiting its vast natural resources.
The appraisal plan for ZAMA sports a gross budget of $325 million with $75 million for contingent operations. Talos Energy was founded in 2012 and operates in the Gulf of Mexico region. Along with CEO Tim Duncan, Michael Harding serves as CFO and Stephen Heitzman is COO.
To Know More Click Here