Talos Energy, a Houston-based oil and gas company, has successfully struck a commercial oil and natural gas discovery in the Gulf of Mexico. This discovery, named the Sunspear prospect, marks a significant achievement for Talos and comes as a result of their focused efforts in exploration and drilling activities.

The Sunspear prospect was part of Talos's plans for late 2023, and it falls under the EnVen portfolio. With anticipated production rates of 8 to 10 thousand barrels of oil equivalent per day (MBoe/d) from recoverable resources ranging from 12 to 18 million barrels of oil equivalent (MMBoe), the project promised a robust output. Successful drilling and exploration culminated in the identification of commercial quantities of oil and natural gas in July 2023.

Preliminary post-drill analysis reveals a promising outcome. Talos found around 260 feet of gross true vertical thickness of oil pay, with 177 feet net across two targeted zones. Notably, 149 feet of net oil pay was identified in the main target, aligning well with pre-drill expectations.

The forthcoming steps include tying the Sunspear discovery to the recently acquired Prince platform, leading to the first oil production within the next 18 to 24 months. Talos, as the operator with a 48% stake, along with Ridgewood Energy Corporation (managed entity, 47.5%) and Houston Energy (4.5%), are the collaborative partners in this promising venture.

Talos's President and Chief Executive Officer, Timothy S. Duncan, expressed enthusiasm for the Sunspear discovery: "This success further demonstrates our belief that owning critical assets in the Gulf of Mexico can significantly enhance subsea drilling economics."

The Prince Tension Leg Platform (TLP), located in Ewing Bank block 1003, will serve as the platform for the Sunspear discovery. The Prince TLP, originally installed in 2001, was designed for a 20-year service life. However, considerations are underway to extend its operational life by 15 additional years.

While celebrating the Sunspear discovery, Talos Energy is concurrently progressing on various other fronts. Their Lime Rock and Venice discoveries are advancing well, with the completion, construction, and subsea installation on track. Both discoveries are expected to commence production in the first quarter of 2024, linked to the Ram Powell facility, an asset owned and operated by Talos.

The Longhorn prospect, which aimed to explore deep objectives beneath the Lobster field, encountered non-commercial levels of hydrocarbons in the deep zone. Despite this, the well encountered over 50 feet of pay across two legacy field zones. The Longhorn well has been suspended for analysis and is expected to be revisited alongside the Lobster field development well, scheduled for the third quarter of 2023.

Furthermore, Talos's plans extend to strategic partnerships and initiatives. The Bayou Bend partnership has secured a rig for an offshore stratigraphic well to be drilled in the second half of 2023. Additionally, they are preparing for a Chevron-operated onshore stratigraphic well, scheduled for the first half of 2024.

In August 2023, Talos made progress on environmental fronts as well. They filed their first EPA Class VI permit for the Harvest Bend CCS project, in which they hold a 60% interest. The company has ambitious plans to apply for at least one more EPA Class VI permit across their portfolio by the end of the year.

Talos Energy's recent endeavors and successes underline their commitment to innovation, exploration, and responsible energy solutions, making a significant contribution to the energy landscape."