Due to the huge oil reform movement in Mexico, foreign competitor will now be allowed back into Mexican waters. In the first bidding for companies to work on the Zama-1 exploration, Houston’s Talos Energy and London’s Premier Oil came out on top. They will be working with Mexico’s Sierra Oil and Gas as they venture off the state of Tabasco and into the Sureste Basin. This is the first time in 1938 that the Petroleos Mexicanos, a state run monopoly, has not controlled the market. This is a huge step for everyone involved and this exploration is expected to have a hugely beneficial effect on Mexico’s failing oil industry.
The Zama-1 well is estimate to hold anywhere from 100 million to 500 million barrels of crude oil according to Premier Oil. It will cost Premier around 16 million dollars for the entire operation. Talos Energy is the operator of the well and it will take them just under three months to complete the project. Based on the location and structure of the well, Zama-1 is expected to be an extremely successful exploration and yield great results. Many people are eagerly watching the proceeds of the Zama-1 exploration since it is expected to have such a beneficial effect on the Mexican oil market. An analyst for Edison Investment Research suggests that the Zama-1 well has a good geological chance of success due to its ideal positioning.
Talos Energy is based in Houston and is a private upstream gas and oil company. They are mainly focused on the exploitation of oil properties as well as the exploration of new territories that have potential success for future expeditions. They are mostly interested in the areas in the Gulf of Mexico and the lower Gulf Coast. They are backed by several companies and continue to make big strides for such a relatively young and small company.
Talos Energy acquired Helix’s subsidiary Energy Resource Technology GOM in 2013 after their success of finding over 100 feet of net oil in the Wang exploration. Energy Resource Technology GOM is expected to bring a large stream of income and oil properties to the company.
Follow Talos Energy on Facebook.