Offshore staff
HOUSTON – Talos Energy has entered a transaction with Pan American Energy subsidiary Hokchi Energy offshore Mexico.
Hokchi will assign a 25% interest to Talos in block 31 in the Sureste basin. In exchange, Talos will assign Hokchi a 25% stake in block 2 to the north.
On completion, Hokchi will operate both blocks, with Talos owning 25% in each case. Completion is subject to approval by the Mexican oil and gas regulator, the National Commission of Hydrocarbons (CNH).
Talos secured the production-sharing contract for block 2 in September 2015 as part of Mexico’s Round 1.1 auction. Hokchi was awarded the PSC for block 31 inRound 3.1 this June.
Talos President and CEO Timothy S. Duncan said: “On both of our Mexican assets, we are taking action to facilitate quicker, more robust investment and shorter cycle time to production, and potentially a more material level of production.
“The swap with Hokchi is a great way to pool resources between two operators that have a proven track-record in offshore Mexico…We look forward to working alongside the Pan American team on blocks 2 and 31 while we focus our operational efforts not only onZama but the other material opportunities we have put together on the block 7 acreage.”
Talos is applying proprietary seismic reprocessing over both blocks, and sees the transaction as a way of speeding up assessment and exploration of various prospects across the acreage, in particular the Acan (ex-Bacab) prospect in block 2.
Two wells will be drilled on block 2 from 2Q 2019 onwards, starting with the Acan prospect, with two more due to follow in block 31.
10/18/2018
