HOUSTON, April 13, 2021 /PRNewswire/ -- Talos Energy
Inc. ("Talos" or the "Company") (NYSE:TALO), along with affiliates
of bp plc ("bp") and Chevron U.S.A. Inc. ("Chevron") (collectively, the
"Co-Owners") today announced successful drilling results from the
Puma West exploration project located in the U.S. Gulf of Mexico
Green Canyon Block 821. The Puma West well was drilled to a total
depth of 23,530 feet and was designed to test sub-salt Miocene
sands.
Key Highlights:
- The Puma West well encountered oil pay in a high-quality,
sub-salt Miocene sand.
- Fluid properties from the discovered Miocene zone carried
similar properties as other productive Miocene reservoirs in the
area.
- The Co-Owners will begin planning an appraisal program that
will better define the discovered resource. The wellbore has been
suspended as a keeper well to preserve future utility.
- Talos maintains an interest in over 17,000 gross acres in the
Puma West area.
The Puma West exploration prospect was evaluated following the
farm-in by bp to Talos-owned Green Canyon Block 821 and subsequent
farm-in by Chevron. bp is the operator and holds a 50.0% working
interest. Talos and Chevron each hold a 25.0% working interest. The
Puma West discovery is located less than 15 miles from the prolific
Mad Dog field, operated by bp.
Talos Energy President and Chief Executive Officer Timothy S. Duncan commented: "We are very
excited about this discovery as well as the broader potential in
this area. Puma West is a great example of the class of high impact
catalyst opportunities still available in the U.S. Gulf of Mexico. Advancements in seismic
technology, operational efficiency and safety at these depths,
combined with ample available infrastructure, support robust
project economics while also providing material domestic energy
resources to consumers with a small environmental footprint. We
look forward to working through our results, planning the appraisal
and advancing this project to its next phase with bp and
Chevron."
ABOUT TALOS ENERGY
Talos Energy (NYSE: TALO) is a technically driven independent
exploration and production company focused on safely and
efficiently maximizing cash flows and long-term value through its
operations, currently in the United
States Gulf of Mexico and
offshore Mexico. As one of the
U.S. Gulf of Mexico's largest
public independent producers, we leverage decades of geology,
geophysics and offshore operations expertise towards the
acquisition, exploration, exploitation and development of assets in
key geological trends that are present in many offshore basins
around the world. Our activities in offshore Mexico provide high impact exploration
opportunities in an oil rich emerging basin. For more information,
visit www.talosenergy.com.
INVESTOR RELATIONS CONTACT
Sergio Maiworm
+1.713.328.3008
investor@talosenergy.com
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
This communication may contain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of
1933, as amended (the "Securities Act"), and Section 21E of
the Securities Exchange Act of 1934, as amended. All statements,
other than statements of historical fact included in this
communication, regarding our strategy, future operations, financial
position, estimated revenues and losses, projected costs,
prospects, plans and objectives of management are forward-looking
statements. When used in this communication, the words "could,"
"believe," "anticipate," "intend," "estimate," "expect," "project,"
"forecast, "may," "objective," "plan" and similar expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. These
forward-looking statements are based on our current expectations
and assumptions about future events and are based on currently
available information as to the outcome and timing of future
events.
We caution you that these forward-looking statements are subject
to numerous risks and uncertainties, most of which are difficult to
predict and many of which are beyond our control. These risks
include, but are not limited to, commodity price
volatility, including the sharp decline in oil prices
beginning in March 2020, the impact
of the coronavirus disease 2019 ("COVID-19") and governmental
measures related thereto on global demand for oil and natural gas
and on the operations of our business, the ability or willingness
of the Organization of Petroleum Exporting Countries ("OPEC") and
non-OPEC countries, such as Saudi
Arabia and Russia, to set
and maintain oil production levels and the impact of any such
actions, lack of transportation and storage capacity as a result of
oversupply, government regulations and actions or other
factors, inflation, lack of availability of drilling and
production equipment and services, environmental risks, drilling
and other operating risks, regulatory changes, the uncertainty
inherent in estimating reserves and in projecting future rates of
production, cash flow and access to capital, the timing of
development expenditures, the possibility that the anticipated
benefits of recent acquisitions are not realized when expected or
at all, including as a result of the impact of, or problems arising
from, the integration of such acquisitions, and other factors that
may affect our future results and business, generally, including
those discussed under the heading "Risk Factors" in our Annual
Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on
March 11, 2021.
Should one or more of these risks occur, or should underlying
assumptions prove incorrect, our actual results and plans could
differ materially from those expressed in any forward-looking
statements. All forward-looking statements, expressed or implied,
are expressly qualified in their entirety by this cautionary
statement. This cautionary statement should also be considered in
connection with any subsequent written or oral forward-looking
statements that we or persons acting on our behalf may issue.
Except as otherwise required by applicable law, we disclaim any
duty to update any forward-looking statements, to reflect events or
circumstances after the date of this communication.
Estimates for our future production volumes are based on
assumptions of capital expenditure levels and the assumption that
market demand and prices for oil and gas will continue at levels
that allow for economic production of these products. The
production, transportation, marketing and storage of oil and gas
are subject to disruption due to transportation, processing and
storage availability, mechanical failure, human error, hurricanes
and numerous other factors. Our estimates are based on certain
other assumptions, such as well performance, which may vary
significantly from those assumed. Therefore, we can give no
assurance that our future production volumes will be as
estimated.
CAUTIONARY NOTE TO INVESTORS
The SEC permits oil and gas companies, in their filings with the
SEC, to disclose only proved, probable and possible reserves that
meet the SEC's definitions for such terms. In this
communication, the Company uses certain broader terms such as
"contingent resources", "oil pay" and "2C resources" that the SEC's
guidelines strictly prohibit the Company from including in filings
with the SEC. These types of estimates do not represent, and
are not intended to represent, any category of reserves based on
SEC definitions, are by their nature more speculative than
estimates of proved, probable and possible reserves and do not
constitute "reserves" within the meaning of the SEC's rules.
These estimates are subject to greater uncertainties, and
accordingly, are subject to a substantially greater risk of
actually being realized. Investors are urged to consider
closely the disclosures and risk factors in the reports the Company
files with the SEC.
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