Talos Energy LLC, Sierra Oil & Gas, and Premier Oil Plc entered into a joint venture to commence the drilling of a new well that is offshore in Mexican waters.
Mexico Oil Reforms
According to Premier, a London-based Oil company, the well is the first exploration offshore to be launched by other parties apart from the Petreoleos Mexicanos which is a monopoly run by the state since 1938. In addition, The Zama-1 well is located off the Tabasco state in the Sureste Basin and holds approximately 100 to 500 million crude oil barrel. The drilling process is completed after 90 days at a 16 million dollar cost. After Mexico made a vote to open its oil industry to the investors in the private sector in 2015, the three oil companies won rights to oil prospect during the first bidding round. According to Charlie Sharp who serves as an oil analyst at Canaccord Genuity Ltd, Zama is the most interesting and innovative well explorations to be drilled in 2017. In this venture, Talos owns a 35% stake whereas Sierra holds 40% and Premier holds 25%.
About Talos Energy LLC
Talos is a privately held oil and gas company in Houston. The company mainly focuses on the exploration, exploitation, and acquisition of oil and gas in the Gulf Coast and the Gulf of Mexico. On May 30, 2017, the oil & gas company announced Talos Production LLC as its wholly owned subsidiary. Also, Talos announced when it completed the 620 million dollar acquisition of ERT (Energy Resource Technology GOM, Inc), a gas and oil subsidiary of Helix Energy Solutions Group, Inc.
The assets of ERT are situated in the Gulf of Mexico, and in December 2016, the barrels of oil were averaged at 16,155 per day. In addition, ERT also made an announcement on the successful venture of the Wang exploration well where there was more than 100 feet of net oil of high quality in the Phoenix Field. According to Tim Duncan, the Chief Executive Officer and President of Talos Energy, closing the transaction of ERT has yielded higher oil results in the Gulf of Mexico.
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