Talos Energy is a household name in the global oil and gas exploration industry. In the year 2013, the company attained a significant feat by acquiring Energy Resource Technology GOM, Inc. This development came amidst the groundbreaking news that ERT had successfully finished its Wang exploration that discovered more than 100 feet of oil in Phoenix.
Talos Energy’s primary operations are based in the Gulf of Mexico and the Gulf Coast. In this region, the company focuses on asset acquisition, exploration, and exploitation. Recently, Talos Energy in a joint venture with two other oil and gas companies began drilling the first offshore well done by an entity that is not run by the state. The exploration and exploitation of oil on the Suretse basin by Talos, a foreign, private entity comes is as a result of the Mexican government liberalizing the nation’s oil and gas sector.
The prospects from the well that is called Zama-1 are economically viable given that the well approximately holds between 100 million and 500 million barrels of oil. The operations at Zama are carried out by Talos Energy with a stake of 35% in the venture, alongside two other partners namely Sierra Oil and Premier Oil Plc from London. The two firms hold a 40 percent and 25 percent stake respectively in the venture. Analysts have already weighed in on the economic potential of the Suretse Basin on which Zama well has been drilled. Elaine Reynolds an analyst who works with Edison Investments Research Ltd., a London-based research firm, paints a bright picture of what oil exploration in the Basin would be. From the data that is available, Reynolds is convinced that the project has a very high success rate.
New reforms that are sweeping through the oil and gas sector in Mexico are expected to attract new players to an otherwise ailing industry. With the liberalization of the market, more foreign players are expected to open up shop on the Gulf Coast and the Gulf of Mexico. Charlie Sharp, a professional in the oil sector who works with Canaccord Genuity Ltd, is positive that Zama well will have an impact in the Mexican oil market.
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