Released June 08, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Talos Energy Incorporated (NYSE:TALO) (Houston, Texas) is notching up growth from its properties in the Gulf of Mexico. In addition to its recently announced discovery of new oil at its Attic Well in the Tornado Field, Talos is bolstering its work in the prosperous Green Canyon, Mississippi Canyon and Viosca Knoll areas, with capital spending set to accelerate through the summer and into autumn. Industrial Info is tracking $1.7 billion worth of active projects involving Talos, about two-thirds of which is attributed to crude oil production.
Click on the image at right for a graph detailing active Talos Energy projects in the Gulf of Mexico, by industry sector.
Following a series of completions over the past year in the Gulf of Mexico's Green Canyon block, Talos is mobilizing a rig from that area to its Pompano development in the adjacent Mississippi Canyon. The multi-well program comprises several low-risk re-completions, development and exploitation projects, including one well to begin drilling in the third quarter and two more to be drilled in the first half of 2022. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the 2021 and 2022 projects.
Although this year's third-quarter Pompano development will involve planned downtime to install the platform rig, "the production-handling fees and associated cash flows we expect over the long haul from this well is significant to Talos and consistent with our strategy of hosting third-party production to utilize the spare capacity of our facilities," said Chief Executive Officer Timothy Duncan in a quarterly earnings-related conference call.
North of the Mississippi Canyon and closer to the Louisiana shore, Talos began a $30 million drilling program in the Viosca Knoll Field earlier this year. The project will be tied back to Talos' Ram Powell Platform via a $17 million pipeline, following its completion this summer. Subscribers can learn more from Industrial Info's project reports on the drilling program and pipeline.
Click on the image at right for a map of active Talos projects in the Gulf of Mexico, from Industrial Info's Geolocator tool.
Talos also leads Block 7, a private energy consortium that is developing the Zama field in the southern Gulf of Mexico alongside Mexico's state-owned Petróleos Mexicanos (Pemex). Block 7 owns 49.6% of the gross interest in Zama, and Pemex holds 50.4%. As the parties involved await a final investment decision, expected later in the year, they are planning a $400 million platform in the southern area of the field to generate 10 million standard cubic feet per day of natural gas and 50,000 barrels per day (BBL/d) of crude oil, and a $300 million platform in the northern area to generate the same amount. Talos and its partners also are considering a $500 million floating storage and offloading (FSO) unit in the southern area.
"The Block 7 partners are working with the Pemex team to advance the Zama development plan, so we do not lose any momentum while we finalize unitization [an agreement to jointly operate the asset]," Duncan said in the earnings conference call. "We intend to reach firm agreement on all key issues before any public announcements are made by Talos Partners or Pemex." Subscribers can read detailed project reports on the southern platform, northern platform and FSO unit.
Talos's capital expenditures totaled about $71 million in the first quarter, as it finished its Green Canyon 18 program and other exploration projects. Shannon Young, the chief financial officer for Talos, said in the conference call that the company expects spending to be higher in the second and third quarters as other deepwater rigs begin work, before tapering off in the fourth quarter. The company did not provide specific spending figures for the last three quarters of 2021.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Click on the image at right for a graph detailing active Talos Energy projects in the Gulf of Mexico, by industry sector.Following a series of completions over the past year in the Gulf of Mexico's Green Canyon block, Talos is mobilizing a rig from that area to its Pompano development in the adjacent Mississippi Canyon. The multi-well program comprises several low-risk re-completions, development and exploitation projects, including one well to begin drilling in the third quarter and two more to be drilled in the first half of 2022. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the 2021 and 2022 projects.
Although this year's third-quarter Pompano development will involve planned downtime to install the platform rig, "the production-handling fees and associated cash flows we expect over the long haul from this well is significant to Talos and consistent with our strategy of hosting third-party production to utilize the spare capacity of our facilities," said Chief Executive Officer Timothy Duncan in a quarterly earnings-related conference call.
North of the Mississippi Canyon and closer to the Louisiana shore, Talos began a $30 million drilling program in the Viosca Knoll Field earlier this year. The project will be tied back to Talos' Ram Powell Platform via a $17 million pipeline, following its completion this summer. Subscribers can learn more from Industrial Info's project reports on the drilling program and pipeline.
Click on the image at right for a map of active Talos projects in the Gulf of Mexico, from Industrial Info's Geolocator tool.Talos also leads Block 7, a private energy consortium that is developing the Zama field in the southern Gulf of Mexico alongside Mexico's state-owned Petróleos Mexicanos (Pemex). Block 7 owns 49.6% of the gross interest in Zama, and Pemex holds 50.4%. As the parties involved await a final investment decision, expected later in the year, they are planning a $400 million platform in the southern area of the field to generate 10 million standard cubic feet per day of natural gas and 50,000 barrels per day (BBL/d) of crude oil, and a $300 million platform in the northern area to generate the same amount. Talos and its partners also are considering a $500 million floating storage and offloading (FSO) unit in the southern area.
"The Block 7 partners are working with the Pemex team to advance the Zama development plan, so we do not lose any momentum while we finalize unitization [an agreement to jointly operate the asset]," Duncan said in the earnings conference call. "We intend to reach firm agreement on all key issues before any public announcements are made by Talos Partners or Pemex." Subscribers can read detailed project reports on the southern platform, northern platform and FSO unit.
Talos's capital expenditures totaled about $71 million in the first quarter, as it finished its Green Canyon 18 program and other exploration projects. Shannon Young, the chief financial officer for Talos, said in the conference call that the company expects spending to be higher in the second and third quarters as other deepwater rigs begin work, before tapering off in the fourth quarter. The company did not provide specific spending figures for the last three quarters of 2021.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
