Talos Energy comments on recent executive orders

Jan. 29, 2021
Company says that it does not expect any material near-term impact to its business model.

Offshore staff

HOUSTON – Talos Energy Inc. has commented on recent secretarial and executive orders pertaining to oil and natural gas activities on federal lands and reiterated its ability to continue normal operations for both existing production and future drilling projects.

Talos says it does not expect any material near-term impact to its business model, operating plans or ability to continue generating long-term shareholder value from the recently announced orders.

The company said: 

"Specifically, last week’s Secretarial Order 3395 temporarily revised delegations of authority within the Department of the Interior for approvals of leases and permits outside of existing ongoing operations for the next 60 days, and does not constitute a ban or moratorium."

"Furthermore, as stated in this week’s Department of the Interior news release, the Executive Order issued on Wednesday places a pause on new leasing activities in federal lands, but it has no impact on existing operations or permits for existing leases, which are continuing to be reviewed and approved. Thus, Talos does not expect any material near-term impact to its current production or its ability to conduct development, exploitation and exploration activities across the company's significant footprint of approximately 1.5 million gross acres."

"Additionally, Talos expects to continue its highly active business development efforts across the industry’s 11.7 million acres of active federal leases in the U.S. Gulf of Mexico."

President and Chief Executive Officer Timothy S. Duncan added: “Despite the current regulatory environment, we do not see any material impediments to continuing to execute our business – providing reliable, secure, affordable, domestic energy resources to supply our society while operating in a safe, environmentally and socially responsible way. There is no doubt that oil and natural gas play a crucial role in our daily lives, supplying the growing demand for energy to generate electricity, fuel cars and airplanes and power domestic manufacturing. This demand is best supplied with our own domestic resources, rather than importing from abroad, which would increase emissions, increase costs to consumers, decrease government revenues, reduce security and destroy American jobs.”