Talos Energy Reforms Mexican Oil Industry

The Mexican oil industry has for the first time ever in history of nearly 8 decades seen a reform in its production activities. A foreign private company has been allowed to sink a new offshore well in Mexican waters. The oil industry has in the past been single handily monopolized by state-owned Petroleos Mexicanos since 1938.Three companies have jointly ventured in the oil exploration-mission and read full article.

Among the companies is Talos Energy. The oil and gas private company was established in 2012. The firm has its head offices in Houston. Talos Energy is headed by Timothy S. Duncan: the Chief Executive Officer and president. The company now specializes in development, exploration and production of oil and natural gas in the Gulf Coast and the Gulf of Mexico and what Talos Energy knows.

Other companies in the venture include: London based Premier Oil plc. and Mexico’s Sierra Oil and gas. The three companies won the prospect rights in 2015. According to a recent statement by Premier, the oil drilling activities had already begun by May 21, 2017.

Talos Energy together with its venture partners through Premier announced that the Zama-1 explorations well in the Sureste Basin off the state of Tobacco reserves approximately 100 to 500 million barrels of crude oil. Talos is the operator of the well with a stake of 35 percent; Sierra holds 40 percent and Premier 25 percent. Drilling was expected to take three months to completion. The estimated cost was 3 million dollars and Talos’s lacrosse camp.

Elaine Reynolds, an analyst at Edison Investment Research limited London, made a statement to clients that drilling activities at the Zama-1 well were to be keenly watched by the oil industry. This will be the first non-Pemex well to be drilled by the reformation of the county’s energy. Edison was optimistic that the project has high geological chances of success due to the structure of the basin.

Charlie Sharp, an analyst at Canaccord Genuity Limited, noted that the Zama-1 project could possibly be one of the most interesting oil wells in the sector in the whole year due to its implications for the Mexican oil and gas market and https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=183786013.