From: Talos Third Quarter 20197 Nov 2019 08:05
https://uk.advfn.com/stock-market/NYSE/TALO/share-news/Talos-Energy-Announces-Third-Quarter-2019-Financia/81087209
Block 7: Following the successful completion of the Zama appraisal program, Talos is working with Netherland, Sewell & Associates, Inc. to complete a formal resource report by year end 2019. The Company reiterates its previously stated resource guidance in the upper half of its pre-appraisal estimated range of 400 – 800 MMBoe gross recoverable resources. Talos has initiated early FEED work to allow for the earliest possible initial production date and is utilizing all of the appraisal data to create an optimal development plan for the field. Zama unitization discussions with Petróleos Mexicanos ("Pemex") are ongoing. As previously announced in September 2019, the Company was also recently granted a two-year contract term extension as well as regulatory approvals to allow for exploration activities on additional retained acreage in Block 7, which is separate and incremental to the Zama asset.
Block 31: The Block 31 exploration project consisted of two wells, Xaxamani-2EXP and Tolteca-1EXP, both drilled in the third quarter of 2019. The Xaxamani-2EXP well logged approximately 148 feet (45 meters) of gross TVD pay, with a net to gross ratio of approximately 78% in two shallow oil sands. Subsequently, the Tolteca-1EXP well logged approximately 123 feet (37 meters) of gross TVD pay, with a net to gross ratio of approximately 97%, all located in the deeper of the two sands found in the Xaxamani-2EXP well. The Tolteca-1EXP well expected to find an oil-water contact but logged hydrocarbons "full to base," exceeding pre-drill expectations for reservoir thickness and areal extent, thereby increasing resource expectations not only in the drilling program to date, but also increasing expectations of similar geophysical anomalies that could open up a shallow oil play in the contract area.
The Xaxamani discovery is located approximately one mile from shore in less than 100 feet of water. Talos holds a 25% working interest in Block 31. Since 2017, Talos has now drilled or participated in eight wells in offshore Mexico, including five exploration wells, resulting in two material oil discoveries.
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