Timothy Duncan founded Talos Energy LLC in 2012. The oil and gas company was designed to explore, develop, and produce oil and natural gas properties found within the Gulf Coast and the Gulf of Mexico. Duncan used a $600-million equity raise from Apollo Global Management and Riverstone Holdings to create the company. In 2017 Talso was one of three companies to discover a bonanza of light crude in the Zama-1 field off the Gulf of Mexico. Over 1.4 billion barrels of oil were discovered, with millions more projected to be there.
The find is great news for Talos and the rest of is consortium. But before celebrations go into effect the discovered oil has to be drilled, processed, and then brought to market. These are not simple tasks. The act of bringing barrels to market requires an entire infrastructure. As two other companies, UK’s Premier Oil and Mexico’s Sierra Oil and Gas, are also involved the weight is a little easier to bear. Talos is the leading company however, so a lot of that weight swings its way. Although infrastructure may be in the beginning phase at present, drilling is already taken care of.
Talos’s appraisal of the field has already been approved by Mexico’s Oil Regulator. This is the first step in the development of Zama-1. The appraisal calls for two new wells to be drilled. The sum total cost of these wells will be around $325 million dollars. The drilling will begin at the end of November and is projected to be complete in 2019. The wells will be built, and production of the crude can begin. If all goes according to plan the operation will yield 100,000 to 150,000 barrels of oil by 2023.
As for the market itself Talos is already making plans. According to Duncan the operation will require platforms as the field is under 500 feet of water. As this construction will take time, he is confident that market fluctuations will evolve. Such fluctuations will allow Talos to get better idea of what to do with the oil. For now all effort will go into building the wells.
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