Talos Energy Inc. strikes oil and gas in Gulf of Mexico; Participates in Sebastian prospect drilling

Talos Energy Inc. (NYSE: TALO) has announced a significant discovery of commercial quantities of oil and natural gas at its Ewing Bank 953 well, located in the U.S. Gulf of Mexico. In a separate development, Talos Energy is also participating in the drilling of the Sebastian prospect in the Mississippi Canyon Block 387 of the Gulf of Mexico, which could further bolster its offshore assets.

Key Discovery at Ewing Bank 953 Well

The Ewing Bank 953 well (“EW 953 well”) successfully encountered approximately 127 feet of net pay in the target sand at a depth of about 19,000 feet true vertical depth (TVD). Preliminary data from Talos Energy Inc. suggests an estimated gross recoverable resource potential of 15 to 25 million barrels of oil equivalent (MMBoe) from a single subsea well. Initial gross production is projected to be between 8,000 and 10,000 barrels of oil equivalent per day (MBoe/d). The first production from this well is expected by mid-2026.

The EW 953 well is planned to be tied back to the South Timbalier 311 Megalodon host platform, which is partially owned by Talos Energy Inc. Talos holds a 33.3% working interest (W.I.) in the EW 953 well, while Walter Oil & Gas Corp., the operator, holds a 56.7% W.I., and Gordy Oil Company has a 10% W.I.

Participation in Sebastian Prospect Drilling

Separately, Talos Energy Inc. has entered into an agreement to participate in the drilling of the Sebastian prospect, which began in late August 2024. This prospect, located in the Mississippi Canyon Block 387, targets the regionally prolific Upper Miocene K-1 reservoir at approximately 12,000 feet TVD. The Sebastian prospect is supported by amplitude data and is estimated to contain a gross resource potential of 9 to 16 MMBoe, with a potential initial production rate of 6,000 to 10,000 MBoe/d. Results from this drilling are expected in the late fourth quarter of 2024. If successful, the prospect will be tied back to the Delta House facility, in which Talos has a partial interest. Murphy Oil Corporation is the operator for this prospect.

Talos Energy’s Strategic Focus

Joe Mills, Interim President and Chief Executive Officer of Talos Energy Inc., expressed optimism about the EW 953 well’s results, stating, “The well logged better than expected rock properties, which we believe should lead to a robust initial flow rate.” He highlighted that this discovery aligns with a series of successful single-well subsea exploitation wells tied back to Talos-owned existing infrastructure, including Venice, Lime Rock, Sunspear, and the Claiborne sidetrack.

Mills also noted that the inclusion of the Sebastian prospect in the second-half 2024 drilling portfolio was achieved without requiring updates to the company’s capital expenditures guidance for the year. He added, “These drill-ready projects exemplify our focus on tactical, lower-risk opportunities that can be brought online relatively quickly and supplement our larger, longer lead drilling projects.”

These developments signify Talos Energy Inc.’s continued efforts to expand its offshore portfolio in the Gulf of Mexico through targeted, lower-risk projects that leverage existing infrastructure. The successful outcomes of these wells could further enhance the company’s production profile and support its growth strategy in the region.