Talos Energy (TALO) Update - Sept 12

[dan_s]

We will be publishing our initial profile on Talos tomorrow morning.

Note from John White at Roth Capital today:

Our valuation of TALO is based on a net asset value (NAV) analysis which produced $39.79 per share which we adjusted higher to $40.00, which is our price target.

TALO: Two Year Extension for Exploration Activities on Block 7: Positive

TALO announced that it has received a two year contract term extension as well as regulatory approvals for additional exploration activities on Block 7, located in the offshore portion of Mexico's prolific Sureste Basin. TALO is the operator of Block 7.

The primary term of the block was expiring later this year but TALO’s world class discovery, Zama, would not have been subject to the expiration. The remaining exploration acreage was subject to expiration. This extension allows TALO to retain high potential prospects at no cost and with no additional commitments.

TALO and its partners have identified multiple potential exploration targets on Block 7, including the Xlapak and Pok-A-Tok prospects, among others, with typical gross unrisked resources ranges between 75 to 150 million BOE each. The prospects are amplitude supported oil prospects targeting similarly-aged sands as those seen in the drilling campaign related to the Zama discovery and subsequent appraisal.