The first private well in 80 years is being sunk in Mexican waters. This is a combined effort by Premier Oil, Talos Energy from Houston, and Mexico’s Sierra Oil & Gas. Talks is the well operator and has a 35% stake in the outcome. This was brought on by an attempt to integrate foreign competitors into the Mexican energy market after Mexico voted to open its oil industry to private parties. This is the first time an offshore well has been prepared by a company outside of Petroleos Mexicanos.
The well, Zama-1, is located in the Surest Basin off of Tabasco. It is likely to be holding 100 million to 500 million barrels of oil and will cost around $16 million to undergo. Zama-1 is thought to have a great chance of success due to its geological outlay. Charlie Sharp, Canaaccord Genuity Ltd. Charlie Sharp believes this well is going to be the most followed exploration well for the whole year. Everyone is interested to see how this well will affect the failing Mexican market.
Talos Energy is based in Houston, Texas as a privately held oil and gas company. As a company, they are focused on the acquisition of oil and gas in the Gulf of Mexico and Gulf Coast. They are also very interested in oil explorations. Talos is funded by the investments created by Apollo Global Management, LLC, Riverstone Holdings LLC,and Talos management.
Talos Energy recently announced that Talos Production LLC bought out the Energy Resource Technology GOM, Inc and now owns it in its entirety. The energy Resource Technology GOM is a subsidiary of the oil and gas company Helix Energy Solutions Group, Inc and is located in the Gulf of Mexico. They purchased it for $620 million and it is estimated to retrieve over 16,000 barrels of crude every day. Energy Resource Technology GOM also had recent success with their Wang exploration when they discovered over 100 feet of high quality net oil. Time Duncan, President of Talos Energy, announced that they are very excited about this acquisition and believe they are now in a good financial position to open a larger E&P company in the lower Gulf Coast and the Gulf of Mexico.
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