Talos Energy is expanding its exploration footprint in the western Caribbean while advancing a series of appraisal, development and production activities across its US Gulf portfolio.
Offshore Honduras farm-in expands exploration portfolio
Talos Energy has agreed to take an 80% operated interest in a block offshore Honduras, with existing owner CaribX retaining a 20% share, according to the Talos' recent quarterly update.
At present, Talos has concluded a deal for 45% of its working interest and has assumed operatorship. Acquisition of the remaining 35% remains subject to approval by Honduras' Secretaría de Energía, but this should be confirmed within the next three months.
The acreage, spanning more than 4 million acres, contains shallow and deepwater exploration opportunities, including untested deepwater Miocene prospects within a working petroleum system.
The farm-in gives Talos exposure to a frontier exploration area in the western Caribbean, where the company plans to acquire 3D seismic data later this year.
Talos’ farm-in involves a seismic carry and minimal sunk-cost reimbursement arrangement. The company has the option to participate in an exploration well, subject to the results of a seismic acquisition program.
An initial 3D seismic campaign is planned later this year.
Gulf appraisal and development projects advance
In the US Gulf of Mexico, Talos spudded the Daenerys appraisal well early last month, with results expected by year-end.
The first development well for the Beacon Offshore Energy-operated Monument project in the Walker Ridge area (Talos 29.7%) reached its total MD of 32,250 ft, delivering about 250 ft of net pay, in line with expectations.
Drilling of the second well will start shortly followed by completion operations on both wells. Talos expects startup by year-end, in the range 20,000 to 30,000 boe/d.
Monument, a large Wilcox oil discovery, is being developed as a subsea tieback to the Shenandoah production platform, with committed firm capacity of 20,000 bbl/d. Talos added that another identified drilling prospect could potentially extend the resource beyond the base development case.
Finally, the company has restored the Genovesa well to production following a successful workover.
