Talos Energy (TALO) Update - March 26

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dan_s
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Talos Energy (TALO) Update - March 26

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Zama field unitization has moved into a new phase, with the Mexican Ministry of Energy tasked with proposing finalized terms of a Unitization and Unit Operating Agreement for the offshore Mexico field, as established by Mexican regulation.
OGJ editors
Mar 26th, 2021

Zama field unitization has moved into a new phase, with the Mexican Ministry of Energy (SENER) tasked with proposing finalized terms of a Unitization and Unit Operating Agreement (UUOA) for the offshore Mexico field, as established by Mexican regulation, Talos Energy Inc., Houston, said Mar. 26

Discovered in 2017 by a Talos-led consortium with partners Premier Oil and Wintershall Dea, Zama is a shared reservoir that extends from Block 7 to neighboring AE-0152-Uchukil Asignación in the Cuencas del Sureste, in the Bay of Campeche in Mexico, operated by Petróleos Mexicanos (Pemex).

Pemex and the Block 7 consortium did not propose a UUOA to SENER within the timeframe established by the unitization guidelines, which ended Mar. 25, 2021, following an extension granted by SENER (OGJ Online, July 20, 2020).

Constitution of a formal unit is required prior to final investment decision (FID) and field development (OGJ Online, Jan. 7, 2020). Talos, as part of its fourth quarter and full year report released prior to the deadline, said pending the conclusion of unitization discussions “in the coming weeks,” the company aimed to reach FID on the project before year-end 2021.

Also noted in the report was an updated contingent resource estimate of Zama. In parallel with the unitization discussions, Talos said, Netherland, Sewell & Associates Inc. updated the estimate by integrating additional rock and fluid data obtained during the appraisal program. Gross volumes are now estimated at 735 MMboe of 2C resources, with 60% expected to be contained within Block 7.
Dan Steffens
Energy Prospectus Group
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