In July of 2017 Talos energy based in Houston was the first private entity to drill for oil in Mexican territorial waters. The project came about after Mexico made the ground-breaking decision to allow in not only a private operator, but one from a foreign nation. Mexico’s oil industry has been nationalized since 1938. Only state-owned Pemex has exploited Mexican natural resources for the past eight decades.
The well dropped by Talos Energy has been named ZAMA-1. It is located in Block 7 of the Sureste Basin located off the coast of the Mexican state of Tabasco. Block 7 comprises an area of 122,000 acres. An Ensco 8503 floating rig was used for drilling that reached a depth of 11,000 feet.
The find is potentially large and significant. Early estimates are that ZAMA may bear 1.4 billion to perhaps two billion barrels of oil. This is believed to be light oil with API gravities between 28 and 30 degrees. The main purpose of drilling ZAMA was to prove the existence of hydrocarbon resources in this location. That appears to have been an unqualified success.
In addition to working in cooperation with Mexican authorities and state-owned Pemex, Talos Energy is partnering with two other entities. These are Premier Oil of the United Kingdom and Sierra Oil and Gas, a Latin American firm. These entities, together with Pemex, constitute a consortium of operators who hope to exploit the considerable potential of this location in the shallow waters of the Gulf of Mexico.
Talos Energy is led by CEO Timothy Duncan. The company was formed in 2012 and concentrates its efforts in the Gulf of Mexico regions. Mr. Duncan recently bolstered the position of his company through a merger with Big Stone Energy and by acquiring Whistler Energy II. Talos Energy is now a publicly traded company listed on the NYSE as TALO.
A great deal of work remains to be done before ZAMA can bring oil to the surface. However, if all goes well, ZAMA and associated sites bear the potential to deliver 100,000 to 150,000 barrels of oil per day by year 2023. Click here