Talos Energy Shares in Historic Oil Discovery Off Shores of Mexico

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Posted by omeditors | Posted in Business, Industry | Posted on 26-11-2017

It’s being called a historic discovery of new oil in the Gulf of Mexico. A well called ZAMA-1 made history recently for a variety of reasons, not the least of which is that it’s the first well sunk by private industry and foreign competitors in waters owned by Mexico in some 80 years.

Mexico has not allowed private well-drilling projects since that country nationalized its oil industry more than eight decades ago. But Mexico is determined to jump-start economic development and boost its world standing as a major energy producer. It enacted reforms that opened up its potential oil resources to private exploration.

In May of 2017, three companies were awarded a contract to drill for oil in a location off the coast of the Mexican state of Tobasco. The companies participating in the project are Talos Energy, London’s Premier Oil and Mexico’s Sierra gas & Oil.

It was expected that this location in the Sureste Basin might hold up to 500 million barrels of crude, but after drilling was completed, the find is almost certainly holding at least one billion barrels of oil, and may be as large as two billion barrels.

Talos Energy LLC is an oil exploration company based in Houston, Texas. The company was founded in 2012 by Timothy Duncan who raised some $600 million in start-up capital. Talos focuses on the Gulf Coast and Gulf of Mexico in its exploration efforts.

Talos will be the operator of the ZAMA-1 well, and has a 35% share in the project. Sierra Oil holds 40% and Premier Oil is in for a 25% share.

This major discovery of new Gulf oil shows that small, nimble, innovative and efficient oil production companies such as Talos Energy can be significant players in the global quest for energy.

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