Talos Energy is a prominent energy company located in Houston, Texas. The private energy investment company has been making headlines lately for a number of different reasons as they’ve sought to expand their portfolio and leap into new projects and new waters. Well, in 2017 Talos Energy will be joining a pair of other energy companies as they jump into the formerly private offshore waters of Mexico to break ground on a new well, the Zama-1.
For the past 80 years Mexico has been completely closed off to foreign investors when it comes to the realm of offshore oil drilling. The entire industry has been completely nationalized and as a result Mexico has had a monopoly style stranglehold on the entire industry, as is their right. However, a round of voting in 2015 opted to bring private investors back into their waters, for the first time since 1938, in order to work on the next big project — which ended up being the Zama-1.
The Zama-1 well will be drilled deep within the Sureste Basin which is located in the waters outside of the Mexican state, Tabasco. Estimated reports by analysts put the expected yield of the well at somewhere between 100 and 500 million barrels of crude oil. This is quite the hefty haul and leading the charge will be the team at Talos Energy. Talos Energy will be joined by Mexico’s own Sierra Oil& Gas as well as London’s Premier Oil. The split in revenue is not even and Talos Energy will be taking a hulking 35% stake in the business. Charlie sharp, from Canaccord Genuity, offered his input to the new operation by saying it is, “one of the most interesting exploration wells to be drilled in the sector this year.”
Despite being a huge job the expectation is that the well will be completely drilled within 90 days. Talos Energy will be the lead operator. Analysts from Edison Investment Research have verified that the well has a high “geological chance” for being a success. If Talos Energy and co succeed we could see Mexico begin to open up their waters more and more. To know more click here.