Mexican waters have proven to be an unfriendly territory to almost all privately owned companies seeking to drill oil in these regions. However, the agonizing 80-year wait seems to have been brought to an end. For the first time, after almost eight decades, in an area where private firms were unable to discover oil, the Joint venture of Premier Oil plc, Talo oil and Sierra Oil and Gas in drilling a well in the region has proved successful. This will be the first time a privately owned company will be drilling in these areas. This comes as great news as the only company that has been dominating these waters is the Mexican State Owned Petroleos Mexicanos which was as a result of the nationalization of Mexico’s oil reserves and what Talos knows.
Talo oil, one of the Privately owned oil companies, has its headquarters in Houston Texas. Drilling in this region will prove to be a worthwhile investment for the company if consideration is put on the fact that Talo recently acquired Energy Resource Technology through its entirely owned subsidiary, Talos production LLC at the cost of $620 million. The acquired company has assets in Mexico’s gulf. It has been estimated that Energy Resource Technology has assets that are equal to 16,155 barrels of oil daily as of last December. Before the sale, ERT was exploring other oil wells such as the Wang exploration well which has close to 100 feet of high-quality oil deposits and their Facebook.
Talo oil will be on another spending spree since they have a projected revenue that is close to $500 million this year alone. Taking into consideration that Talo oil, in February acquired the Oil and Gas producing Subsidiary of Helix Oil for a whopping $620 million (Helix Energy solutions aims at retaining an overriding interest in the Wang exploration well), and the projected income, tremendous growth to Talo oil is in the offing. This will result in more hiring hence a significant amount of jobs will be created. It is estimated that drilling in this region by the privately owned companies may take up to three months. During this time, it’s expected that (100-500) million barrels of crude oil will be drilled from this region and Talos’s lacrosse camp.