Talos-led group returning to Daenerys discovery in Gulf of Mexico

Talos is actively developing its Gulf of Mexico assets through appraisal drilling, capacity upgrades and exploration, while managing operational challenges such as well shut-ins and evaluating new prospects for future growth.
Feb. 27, 2026
2 min read

Talos Energy and its partners plan to drill an appraisal well in the second quarter on last year’s Daenerys discovery in Walker Ridge blocks 106, 107, 150 and 151 in the US Gulf of Mexico.

The discovery well, drilled by the West Vela deepwater drillship at a TVD of 33,228 ft, encountered oil in multiple good-quality, sub-salt Miocene sands. It was then temporarily suspended for future use.

The partnership will aim to test the northern part of the prospect, with the appraisal well designed to penetrate multiple prospective intervals; enable assessment of reservoir and fluid properties; and to allow for various future sidetracks for further appraisal and/or production purposes.

Other partners are Shell Offshore, Red Willow, Houston Energy LP, HEQ II Daenerys LLC, and Cathexis.

In its latest results update, Talos also disclosed that following last December’s Gulf lease sale, it was named as the apparent high bidder on 11 new leases. These add eight new development and exploration prospects to the company's portfolio.

Courtesy BOEM
BOEM advances ‘Big Beautiful Gulf 2’ lease sale
BBG2 has been scheduled for March 30, 2026. It will offer approximately 15,066 unleased blocks.

Late last year, the company temporarily shut in production from the Genovesa well following failure of the surface-controlled subsurface safety valve. This impacted production by about 3,000 boe/d.

However, the well should be restored to normal service this summer following a planned workover.

In mid-2025, the company increased processing capacity at its Tarantula platform to 35,000 boe/d to handle higher volumes after the Katmai West #2 oil well came onstream.

More recent debottlenecking efforts has boosted Tarantula’s throughput to about 38,000 boe/d. While production from the Katmai Field will likely remain flat through late 2027, the company is maturing the possible development of the Katmai North structure with new seismic data.

In the event of a success here, a substantial expansion of the Tarantula facility might be needed.

Toward the end of 2025, Talos (as operator) and Ridgewood Energy Corp. drilled and completed the Cardona well, which started production early this year through the Pompano complex.

The company also drilled the CPN well ahead of schedule, with first production expected in the second half of this year via the Na Kika host. 

However, the Manta Ray well, drilled by operator Walter Oil and Gas (Talos 40%) in late 2025, encountered non-commercial hydrocarbons.

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