Talos reports large Gulf of Mexico discovery

Talos Energy announced on Wednesday that it, along with partners Sierra Oil & Gas and Premier Oil, had made a significant discovery offshore Mexico through the Zama-1 wildcat well.

Initial tests have indicated that Zama could hold up to 1.4 billion-2 billion barrels of original oil in place. The reservoir is thought to contain mainly light oil, with gravities of 28-30 degrees API, in addition to associated gas.

“This is both a historic and significant discovery,” CEO Tim Duncan said in a statement.

“The team deserves a great deal of credit for their conviction in this opportunity and their leadership in making Talos the first private sector operator to receive acreage and drill a successful offshore exploration in Mexico following the landmark energy reforms of 2014.”

Drilled at a water depth of 166 metres to a total vertical depth of 3,383 metres, the well encountered 170-200 metres of net oil pay in Upper Miocene sandstones.

Zama-1 was spudded in mid-May with the Ensco 8503 semi-submersible rig. The well is the first to be drilled in Block 7, as well as the first offshore well to be drilled by private players in Mexico.

The company will continue with exploration of the Zama prospect, targeting deeper objectives of up to 4,267 metres of vertical depth.

Block 7 was awarded during Mexico’s Round 1.2 auction in July 2015. Talos operates the block with a 35% interest, while Sierra and Premier have 40% and 25% stakes, respectively.