Talos (TALO) Initiates Production From Gulf of Mexico Wells
Talos Energy Inc. TALO has commenced oil and natural gas extraction at its Lime Rock and Venice discoveries located in the Gulf of Mexico.
Located near the Ram Powell platform, the wells are exclusively owned and operated by Talos. The company possesses a 60% working interest in both wells.
The Lime Rock and Venice wells were commissioned in late December 2023. The initial combined gross production rate of these wells has been noteworthy. It surpassed 18,500 barrels of oil equivalent per day, with production comprising about 45% oil and 55% liquids. The anticipated combined gross ultimate recoverable resources from the discoveries are estimated to be 20-30 million barrels of oil equivalent.
The Lime Rock prospect was acquired in Lease Sale 256 in November 2020, positioned approximately seven miles from the Ram Powell facility. In contrast, the Venice prospect was identified within the existing Ram Powell unit acreage, situated roughly three miles from the facility.
Initially, Talos maintained a 100% working interest in both prospects. However, the company subsequently reduced its stake to the current 60% through successful farm-downs. The company will also earn volume-based production handling fees from non-operated partners in both discoveries.
TALO achieved something extraordinary by safely starting Lime Rock and Venice in less than a year. It did this by installing equipment underwater and upgrading facilities. These achievements show how Talos uses its strategy of using existing infrastructure and advanced technology to find investment opportunities, helping to increase reserves and production to meet the growing need for energy.
With these new productions, the Ram Powell facility is expected to have its highest sustainable production rate in about 15 years. This success in using existing infrastructure gives Talos a plan for future improvements, developments and explorations around its current and potential new assets.
The company works in the United States and offshore Mexico with the goal of maximizing long-term value through safe and efficient operations. The latest accomplishment highlights Talos’ commitment to using technical and innovative methods in its Upstream Exploration & Production, and Low Carbon Solutions businesses.
Zacks Rank & Stocks to Consider
Currently, Talo carries a Zack Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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