It is the first time that a private company has sunk new offshore oil well in close to eighty years. A joint venture of Sierra oil and gas and talos energy began drilling the well on 21st May. The Zama 1 well that is located at the state of Tabasco has estimated 100 to 500 million barrels of crude oil from the well. The drilling process is expected to last ninety days at a cost of $16. The three companies won the right to drilling in 2015 on the first round of bidding when Mexico voted to open its oil industry to the private investments in the country following the poor performance registered in the oil industry. A London based analyst Elaine Reynolds of Edison Investment says that the well will be keenly watched and that from the structure of the basin, the project has a high geological chance of success.
According to Charlie Sharp of Canaccord Genuity Ltd, Zama is one of the most interesting exploration wells that have been drilled in the sector. Talos is the operator of the well and has 35% value of investment in the project. According to the premier’s statement, Sierra holds 40% and premier 25%.
Talos Energy is a private upstream gas and oil company that focuses on the acquisition and exploration of oil and gas properties within the Gulf Coast and the Gulf of Mexico. It is a portfolio company of funds that are affiliated with Riverstone Holdings and Apollo Global Management. The Company has its headquarters in Houston.
Talos announced its wholly owned subsidiary meaning that Talos production has completed its acquisition of Energy Resource Technology that is an oil and gas subsidiary of Helix Energy solutions. Helix will retain an overriding royalty interest in some exploration aspects and in the Wang discovery.
The president and chief executive officer of Talos Energy, Tim Duncan says that they are motivated by the outcomes of the Wang discovery. The company believes that combining the oil weighted and cash flowing assets with its 24000 square miles of seismic data accompanied with its team of professionals will allow it to transform into a significant E & P company in the lower Gulf coast and Gulf Mexico.
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