Talos Energy has entered into two separate agreements with BP and Exxon Mobil associated to new exploration alternatives within the U.S. Gulf of Mexico. The Company will work with BP to drill and consider the Puma West prospect, situated in Talos-owned Green Canyon Block 821, within the fourth quarter of 2019. Additionally, Talos has acquired from ExxonMobil the Hershey prospect, situated on Green Canyon Blocks 326, 327, 370 and 371.
Talos president and CEO Timothy S. Duncan commented: “Our technique of leveraging deep technical experience throughout our in depth seismic database and our rising infrastructure footprint is relevant to each the acreage we purchase and management in addition to to 3rd get together acreage the place we are able to execute on new alternatives. As these transactions show, Talos is well-positioned to proceed unlocking materials useful resource alternatives in our basin via a number of inventive enterprise improvement avenues. We are excited so as to add these two vital, oil-weighted prospects to our portfolio.”
On the Puma West alternative, Talos will retain a 25% working curiosity, with BP, as operator, holding the remaining working curiosity. The preliminary exploration nicely is anticipated to be spud earlier than the tip of October 2019 utilizing the Seadrill West Auriga ultra-deepwater drillship. The prospect consists of sub-salt, Miocene goal zones believed to be much like the prolific Mad Dog discipline situated lower than 15 miles from the proposed nicely location. The unique Mad Dog spar has produced over 230 MMBoe since inception, and BP is presently establishing the Argos platform for the Mad Dog II venture, which can add 140 thousand barrels of oil per day of further manufacturing capability to the sphere. The Puma West prospect was recognized and permitted by Talos following a big seismic reprocessing effort within the Company's Green Canyon core space.
Duncan commented: “I’m extraordinarily happy with the Talos staff for figuring out and accelerating this chance via a rigorous exploration portfolio assessment and technical analysis that leveraged our substantial seismic database and reprocessing expertise within the basin. Exploration of the Puma West prospect is a well timed and materials alternative for Talos. While not scheduled in our unique 2019 drilling program, by transferring shortly the Company is ready to work with a world-class operator in a probably vital subsea tie-back venture situated on Talos acreage. We imagine that coupling Talos's preliminary prospect analysis with BP's identified experience within the area supplies one of the best alternative for fulfillment, and we stay up for initiating the venture throughout the subsequent 30 days.”
Under a separate settlement with ExxonMobil, Talos has acquired a 100% working curiosity within the Hershey prospect from ExxonMobil and can develop into designated operator of Green Canyon Blocks 326, 327, 370 and 371, which represent roughly 23,000 gross acres. Hershey is a big, sub-salt Miocene prospect with potential for a number of stacked horizons. Based on preliminary estimates, Talos believes that the prospect might include oil-weighted, gross unrisked assets of 100 – 300 MMBoe if profitable. Hershey could possibly be developed as a subsea tie-back to a number of Talos-controlled Green Canyon services or with new, devoted infrastructure.
Duncan added, “The acquisition of the Hershey prospect, situated lower than 10 miles from our Phoenix complicated, provides one other high-impact exploration alternative to our portfolio that may leverage our close by infrastructure and working expertise within the space. The transaction construction, which is 100% contingent-based and accommodates no nicely dedication, supplies Talos with vital monetary and industrial optionality in evaluating the potential useful resource. I applaud each groups for figuring out and growing this win-win alternative following our acquisition of the Antrim prospect from ExxonMobil earlier this yr.”
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