Talos makes Gulf of Mexico transactions with BP, ExxonMobil

Sept. 19, 2019

Offshore staff

HOUSTONTalos Energy Inc. has entered into two separate agreements with BP plc and Exxon Mobil Corp. regarding new exploration opportunities in the US Gulf of Mexico.

The company will work with BP to drill and evaluate the Puma West prospect on the Talos-owned Green Canyon block 821. Talos will retain a 25% working interest, with BP, as operator, holding the remaining working interest.

The initial exploration well is expected to be spud before the end of October 2019 using the Seadrill ultra-deepwater West Auriga. The prospect consists of subsalt, Miocene target zones that are believed to be similar to the prolific Mad Dog field located less than 15 mi (24 km) from the proposed well location.

According to Talos, the Puma West prospect was identified and permitted by the company following a seismic reprocessing effort in its Green Canyon core area.

In addition, Talos has acquired a 100% working interest in the Hershey prospect from ExxonMobil and will become designated operator of Green Canyon blocks 326, 327, 370, and 371, which cover about 23,000 gross acres (36 sq mi).

Hershey is a large, subsalt Miocene prospect with potential for several stacked horizons. Based on preliminary estimates, the company believes that the prospect may contain oil-weighted, gross unrisked resources of 100-300 MMboe if successful. Hershey could be developed as a subsea tieback to multiple Talos-controlled Green Canyon facilities or with new, dedicated infrastructure.

In January, Talos acquired 100% interest in the Antrim discovery on Green Canyon block 364 from ExxonMobil.