HOUSTON, Jan. 15,
2025 /PRNewswire/ -- Talos Energy Inc. ("Talos" or
the "Company") (NYSE: TALO) today announced that the Katmai West #2
well located in the Ewing Bank area of the U.S Gulf of Mexico successfully encountered
commercial quantities of oil and natural gas.
Key Highlights
- The Katmai West #2 well was drilled significantly under budget
and ahead of schedule to a true vertical depth of approximately
27,000 feet.
- Encountered the primary target sand full-to-base with over 400
feet of gross hydrocarbon pay and excellent rock properties in line
with pre-drill expectations.
- Expected deliverability from the well is in line with pre-drill
estimates of approximately 15 – 20 thousand barrels of oil
equivalent per day ("MBoe/d") gross.
- The strong performance from Katmai West #1 well, and the
successful appraisal from Katmai West #2 well, have nearly doubled
the Proved EUR (estimated ultimate recovery) of Katmai West field
to approximately 50 million barrels of oil equivalent ("MMBoe")
gross, which further affirms the company's expected total resource
potential of approximately 100 MMBoe gross.
- First production is expected in the late second quarter
2025.
The drillship West Vela began drilling the Katmai West #2 well
in late October 2024. Talos plans to
case and suspend the well by late January
2025 while the Company finalizes completion plans to be
executed in the second quarter 2025. Production is expected to
start later that same quarter. The well will be connected to the
existing subsea infrastructure that flows to the Tarantula
facility, which has been expanded to increase capacity to 35
MBoe/d. Talos anticipates the Katmai wells will be rate-constrained
under the upgraded capacity, allowing for extended flat-to-low
decline production from the facility. Talos, as operator, holds a
50% working interest, with entities managed by Ridgewood Energy
Corporation holding the other 50% in Katmai West field. Talos is
the 100% owner and operator of the Tarantula facility.
Talos's Interim Co-President, Executive Vice President and Head
of Operations John Spath stated, "We
are proud of our team for achieving these successful drilling
results. Delivering this high-impact deepwater well, approximately
35% under budget and more than a month ahead of schedule,
demonstrates our ability to efficiently execute complex projects
while maintaining top safety and environmental standards. We remain
optimistic about the greater Katmai area, as these results align
with our pre-drill expectations about its gross resource potential.
We look forward to having this well on production and believe it
positions us for strong value creation as we move forward into
2025."
ABOUT TALOS ENERGY
Talos Energy (NYSE: TALO) is a technically driven,
innovative, independent energy company focused on maximizing
long-term value through its Upstream Exploration & Production
business in the United States
Gulf of Mexico and offshore
Mexico. We leverage decades of
technical and offshore operational expertise to acquire, explore,
and produce assets in key geological trends while maintaining a
focus on safe and efficient operations, environmental
responsibility, and community impact. For more information, visit
www.talosenergy.com.
INVESTOR RELATIONS CONTACT
Clay Jeansonne
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 "will,"
"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, the successful development of and
production from the prospects described herein; the uncertainty
inherent in estimating reserves, resource potential and reservoir
performance; the outcome of exploration and drilling efforts;
environmental risks; drilling, geologic and other operating risks;
the profitability and results of wells described herein; timely
completion of development projects; technical or operating factors;
the uncertainty inherent in projecting future rates of production
and cash flows; our access to capital to finance such
opportunities; implementing a successful drilling program and the
other risks discussed in "Risk Factors" in our Annual Report on
Form 10-K for the year ended December 31,
2023 and "Risk Factors" in our subsequent Quarterly Reports
on Forms 10-Q filed with the U.S. Securities and Exchange
Commission (the "SEC").
Should one or more of the risks or uncertainties described
herein 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, included in this communication
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, all of which are
expressly qualified by the statements in this section, to reflect
events or circumstances after the date of this communication.
PRODUCTION ESTIMATES
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.
RESERVE INFORMATION
Estimates of recoverable hydrocarbon volumes and related
measures, including estimates of total resource potential, as
presented herein are based on internal data prepared by the
Company's management team in reliance on several assumptions.
Reserve engineering is a process of estimating underground
accumulations of oil, natural gas and NGLs that cannot be measured
in an exact way. The accuracy of any reserve estimate depends on
the quality of available data, the interpretation of such data and
price and cost assumptions made by reserve engineers. In addition,
the results of drilling, testing and production activities may
justify revisions upward or downward of estimates that were made
previously. If significant, such revisions would change the
schedule of any further production and development drilling.
Accordingly, reserve estimates may differ significantly from the
quantities of oil, natural gas and NGLs that are ultimately
recovered. In addition, we use the term expected "total recoverable
resource" in this release, which is not a measure of "reserves"
prepared in accordance with SEC guidelines or permitted to be
included in SEC filings. These resource estimates are inherently
more uncertain than estimates of reserves prepared in accordance
with SEC guidelines.
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SOURCE Talos Energy
