Talos Energy is one of the companies working on a joint project that has drilled the first private oil well in Mexico since their industry was nationalized nearly 80 years ago. This is the latest step that Mexico has taken to open up their market to foreign operators in a bid to more fully develop their energy resources and help provide a boost to their economy.
The oil well is called Zama-1 and drilling and development is being accomplished by Talos Energy based out of Houston, Premier Oil Plc which is London based, and Mexico’s Sierra Oil & Gas who completes the trio. Petroleos Mexicanos is the state-run monopoly which prior to this endeavor had been the only driller in the Mexican oil industry.
Zama-1 is located offshore from the Mexican state of Tabasco and is believed to hold a substantial reserve of oil. The Sureste Basin is a likely place for drillers and some estimates are as high as 500 million barrels as to its capacity. The lower end of the estimates are a still considerable 100 million barrels of oil. The three companies won a round of bidding in 2015 when Mexico took this historic step of inviting foreigners into their market. To know about Talos Energy click here.
An industry analyst, Elaine Reynolds, who works for London-based Edison Investment Research Ltd. indicates that there is great interest in the project among industry watchers. She also detailed that the geological structure of the basin indicates a high probability for success. Talos Energy will control a 35% stake in the well, Sierra Oil & Gas will control 40% and Premier Oil has a 25% stake in the endeavor.
Talos Energy is an independent oil and gas company that emphasizes offshore exploration and production. They specialize in acquiring assets in two primary regions and they are the Gulf Coast and the Gulf of Mexico.
The expertise of Talos Energy is enhanced by their significant usage of three-dimensional seismic data that allows them to accurately map the acreage under their control. This happens to be state-of-the-art technology that their world-class staff utilizes to optimize their drilling inventory.