Source: Investing Published Thursday 05/09/2024, 14:17
HOUSTON – Talos Energy Corporation (TALO), an independent energy company, has announced a major oil and natural gas discovery at the Ewing Bank 953 well in the Gulf of Mexico, United States. The well has discovered approximately 127 feet of net thrust, and preliminary estimates suggest that between 15 and 25 could be extracted .Million barrels of oil equivalent. The discovered well, drilled at a real vertical depth of about 19,000 feet, is expected to produce an initial production rate of 8,000 to 10,000 barrels of oil equivalent per day. Talos owns 33.3% of the operating stake in the well, Walter Oil & Gas owns 56.7% of the operating stake in the well, and Jordi Oil owns the remaining 10%. There are plans to connect the well to South Timbaler 311, host to the Miguel field .Without is partially owned by Talos , and the first production is expected to begin by mid-2026. In a separate development, Talos has entered into an agreement to share the Sebastian field that began drilling in late August 2024. Exploration targets the K-1 reservoir in the upper Miocene and is estimated to contain potential total resources of between 9 and 16 million barrels equivalent. The potential initial production rate is expected to be between 6 and 10 million barrels equivalent per day. Results are expected from the Sebastian reservoir, which will be operated by Murphy Oil, by the end of the last quarter of 2024.
Joe Mills, interim president and CEO of Talos, expressed optimism about the discovery of Ewing Bank, citing the rock’s higher-than-expected properties in the well and the potential for a strong initial flow rate. Mills noted that this discovery continues a series of successful exploitative wells linked to Talos’ owned infrastructure and that the inclusion of Sebastian’s well in the company’s drilling portfolio will not require updates to this year’s capital expenditure directives. Headquartered in Houston, Talos Energy focuses on exploration and production in the Gulf of Mexico and Mexico offshore, with a focus on safe operations, environmental responsibility and societal impact.
This news release is based on a press release and contains forward-looking statements regarding the Company’s strategy, operations and potential production rates, which are subject to risks and uncertainties. Actual results may differ materially from those contained in any forward-looking statements. In other recent news, Talos Energy has made great strides in its operations. The company reported record results for the second quarter of 2024, with oil production reaching 955,000 barrels per day and adjusted earnings before interest, tax, depreciation and amortization of $344 million. In addition, Talos Energy showed Commitment to shareholder value through repayment of $100 million of debt and repurchase of 3.8 million shares.
In a recent development, the company appointed Joseph A. Mills as interim president and CEO following the resignation of Tim Duncan. Talos Energy is currently seeking to appoint a permanent CEO with the help of an executive research firm. In terms of future prospects, Goldman Sachs maintained a purchase rating for Talos Energy, citing the company’s strong financial performance and successful acquisitions of Quarter North and Monument. The company also highlighted Talos’ growth plans , including the delivery of the West Vela platform for drilling the Katmai West well, and a new project scheduled to begin in 2025.
