Deepwater breakthrough could spur further action in GoM Walker Ridge subsalt Miocene

Talos Energy’s Daenerys discovery in the Walker Ridge protraction area last week could be the largest new find in the US Gulf of Mexico (GoM) since Shell’s Whale in 2017, according to a recent Wood Mackenzie news release.

Shell also happens to have a non-operated interest in Daenerys, as Wood Mackenzie research analyst Adrian Tjokro pointed out in the Aug. 25 report.

Although Talos has not disclosed its assessment of potential volumes, Daenerys is thought to have been a potential 200 MMboe prospect.

Wood Mackenzie’s preliminary assessment indicates that a development could achieve peak production of 65,000 bbl/d. The discovery also represented a shift in strategy for Talos, which has previously focused mainly on lower-risk infrastructure-led exploration (ILX) prospects in the US GoM.

In addition, the company has two further large prospects in its forward line-up, with both Enterprise and Hershey thought to potentially hold more than 100 MMboe each.

Results from Daenerys, following bp’s Far South discovery in April, could make this the US GoM’s best year for exploration successes in terms of volumes proven since 2020. And there are further exploration wells still to come later in the year.

"The timing is particularly significant with December's lease sale approaching," Tjokro said. “The discovery proves there are still major prizes to be found in the subsalt Miocene, potentially intensifying competition in the Walker Ridge area as companies look to capitalize on favorable royalty terms."

Daenerys could conceivably be developed via a 24-mile subsea tieback to the Occidental-operated Heidelberg Field platform, which is said to have spare capacity. But it could also warrant construction of a new hub.

And as the analysts note, a provision of The One Big Beautiful Bill Act allows for production of multiple stacked reservoirs through a single wellbore. Daenerys could be the first standalone Miocene project planned with these guidelines in mind.

“The Daenerys discovery could reshape the exploration strategy for Gulf of America's Walker Ridge area," Tjokro concluded. "While the Big Foot discovery marked the first subsalt Miocene find in the Walker Ridge margin, Daenerys confirms that the subsalt Miocene trend extends westward into the region and into an area that previously only held Paleogene-aged fields. This success could trigger a reevaluation of the area for other overlooked subsalt Miocene potential after a multi-year absence of 100+ MMboe discoveries in the region."