Glenn Laken

Talos Energy Operations in Mexico

A private company has sunk an offshore well in Mexico, something that has taken almost 80 years. This initiative is part of the strategies to welcome foreign companies back into the country oil market.

According to the report by the Premier, the drilling began on May 21st with the combination of efforts from Premier oils, Talos energy, and Sierra oil & Gas. This is the first offshore oil to be established by a foreign company since the nationalization of the oil industry in 1938.

Premier further disclosed that Zama, one of the wells has 100 million to 500 million barrels of the crude oil. The process of drilling is expected to take up to 90 days estimated at a cost of $16 million. The three companies that will involve in the drilling won the tender in 2015.

Elaine Reynolds will oversee the drilling process. According to the earlier reports of the organization, the strategical location of the basin shows that the project has high chances of succeeding.

Another note from Charlie Sharp, the analysts from Canaccord Genuity Ltd, basing on the effects of the market of the Mexican oil, Zama is seen as one of the most stimulating consideration to be undertaken this year. According to a statement from Premier, Talos is the operator of the well and sees 35% of the state in the venture, the premier has 25% and Sierra owns 40%.

Talos Energy, which is privately owned, is an oil and gas company that concentrates on the investigation and exploitation of the gas and oil primarily in the Gulf of the Mexico and Gulf coast. The company has its headquarters in Houston. This company is funded by funds that are linked with the Apollo Global Management, Talos management, and Riverstone Holdings.

The Chief Executive Officer and the President of the Talos Energy said that they were excited to win the tender. He further added that in the combination of their high cash flow, their seismic data and a high team of personnel, he was confident they will succeed in their operations in the Gulf Coast.

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