July 22nd, 2017

TALOS REPORTS HISTORIC OIL DISCOVERY OFFSHORE MEXICO

July 13, 2017

Talos Energy as operator, together with its joint venture partners Sierra Oil and Gas and Premier Oil, is pleased to announce that the Zama-1 exploration well, offshore Mexico, has discovered oil. Talos holds a 35% participation interest with Sierra and Premier holding 40% and 25% participation interests, respectively.
The Zama-1 well is the first offshore exploration well drilled by the private sector in Mexico’s history. The well, located in 546 feet (166 meters) of water and approximately 37 miles from the Port of Dos Bocas, has reached an initial shallow target vertical depth of approximately 11,100 feet (3,383 meters).
Preliminary analysis indicates:
• A contiguous gross oil bearing interval of over 1,100 feet (335 meters), with 558-656 feet (170-200 meters) of net oil pay in Upper Miocene sandstones with no water contact
• Initial gross original oil in place estimates for the Zama-1 well range from 1.4 to 2.0 billion barrels, exceeding pre-drill estimates, some of which could extend into a neighboring block
• Initial tests of hydrocarbon samples recovered to the surface contain light oil, with API gravities between 28° and 30° and some associated gas.
The well spud May 21, 2017 utilizing the Ensco 8503, a moored floating drilling rig. The Company is currently setting a liner to protect the discovered reservoirs prior to drilling deeper exploratory objectives to a total vertical depth of approximately 14,000 feet (4,267 meters). There are no plans for immediate well testing. Further evaluation will be required to calibrate the well with the existing reprocessed seismic to determine future plans and optimal follow up locations to define the extent of the discovered resource. (Source: Talos Energy)