TALOS ENERGY COMMENCES ZAMA-2 APPRAISAL CAMPAIGN

Talos Energy announced that the Zama-2 appraisal well was spud on Thursday, November 29, 2018. The spudding of the Zama-2 well marks the commencement of the Zama discovery appraisal program, which will consist of three reservoir penetrations, including two wells and one sidetrack.
The Zama oil discovery is located in Block 7 of the Sureste Basin off the shore of Mexico, at a water depth of roughly 165m.
The first well, the Zama-2, will be drilled to the north of the Zama discovery well and will look to confirm the oil water contact and collect information to better understand the reservoir’s aquifer support. The Zama-2 well will also be deepened approximately 500 meters below the Zama reservoir to test the Marte exploration prospect.
The second appraisal well, Zama-3, will be drilled to the south of the original discovery well and will help delineate reservoir continuity and quality in the southern part of the field and will be cored to `understand the reservoir geology. The appraisal program is expected to be completed by mid-year 2019.
The Ensco 8503 rig is contracted and will be utilized for the entirety of the appraisal program. Talos is also working with several local Mexican suppliers who support the operations with many critical services, including shore base support, casing supply, anchor handling, helicopters, and communications, amongst others. Overall, Talos and its partners plan to spend approximately $250 million, excluding contingencies, in Mexico during this appraisal program.
Talos Energy’s President and Chief Executive Officer, Timothy S. Duncan, commented, “We are excited to enter this phase of the Zama project with our partners. We are also very pleased with the new partnerships formed with local Mexican suppliers. There is a significant amount of Mexican presence in our workforce in the Zama project, both on the rig and in the local communities that support offshore operations and we are proud of the impact this project will have in the local Mexican economy. The timing of the commencement of the appraisal program will allow us to stay on track of our goal, which is to achieve initial production from the Zama discovery in 2022.”
Talos is the operator of Block 7 offshore Mexico, which includes Zama, with a 35% participating interest. Premier Oil and Sierra Oil & Gas are Talos’s partners in Block 7. (Source: Talos Energy – Image: Ensco 8503)