The two agreements are related to the exploration opportunities in the US Gulf of Mexico
US-based oil and gas exploration company Talos Energy has signed two separate agreements with BP and Exxon Mobil for new exploration opportunities in the US Gulf of Mexico.
As per the terms of the deal signed with BP, Talos agreed to work with BP to drill and evaluate the Puma West prospect, located in Talos-owned Green Canyon Block 821, in the fourth quarter of 2019.
Talos will own 25% interest in the Puma West prospect while BP, as operator, will own the remaining stake.
Initial exploration well at Puma West prospect to be drilled in October 2019
The partners are planning to spud the initial exploration well using the Seadrill West Auriga ultra-deepwater drillship, before the end of October 2019.
Talos president and CEO Timothy Duncan said: “We believe that coupling Talos’s initial prospect evaluation with BP’s known expertise in the region provides the best opportunity for success, and we look forward to initiating the project within the next 30 days.”
Separately, Talos has acquired the Hershey prospect from ExxonMobil and will be the designated operator of Green Canyon Blocks 326, 327, 370 and 371.
Planned to be developed as a subsea tie-back to multiple Talos-controlled Green Canyon facilities or with new infrastructure, the Hershey sub-salt Miocene prospect has potential for several stacked horizons.
Talos anticipates the prospect could contain oil-weighted, gross unrisked resources of 100 – 300 MMBoe if successful, based on preliminary estimates.
Duncan added: “The acquisition of the Hershey prospect, located less than 10 miles from our Phoenix complex, adds another high-impact exploration opportunity to our portfolio that can leverage our nearby infrastructure and operating experience in the area.
“The transaction structure, which is 100% contingent-based and contains no well commitment, provides Talos with significant financial and commercial optionality in evaluating the potential resource.”
Earlier this year, Talos Energy has completed the Zama appraisal program in Block 7, located in the offshore portion of Mexico’s prolific Sureste Basin.
The firm is the operator of the Block 7 as part of the consortium between the partners Sierra Oil & Gas, a Wintershall DEA company, and Premier Oil.