Talos, PAE in Gulf of Mexico stake swap
MEXICO CITY, October 18, 2018 – A Talos-led consortium has agreed to a stake swap with Pan American Energy subsidiary Hokchi Energy in two Mexican shallow-water blocks, the company announced in a press release on Wednesday.
As part of the deal and subject to government approval, the consortium will exchange a 25% operating interest in its Block 2 for a 25% participating stake for Talos in Hokchi’s AS-CS-15 assignment.
“On both of our Mexican assets, we are taking action to facilitate quicker, more robust investment and shorter cycle time to production, and potentially a more material level of production,” Talos CEO Timothy S. Duncan said. “The swap with Hokchi is a great way to pool resources between two operators that have a proven track-record in offshore Mexico.”
The deal will also allow Talos and its Block 7 partners to concentrate on developing the Zama field discovered in 2017, Duncan added.
The companies plan to drill two exploration wells in Block 2 in Q2 2019, with a separate two-well campaign slated for AS-CS-15 some time after.
Talos, Sierra Oil & Gas and Premier Oil together won Block 2 in Mexico’s first-ever E&P bidding round in September 2015. Hokchi’s AS-CS-15 block was awarded in June this year as part of Round 3.1. Both assets are located in the Southeastern Basins in the Gulf of Mexico.
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