This could be a very good year for TALO shareholders.
1. The EnVen Energy Acquisition will add over 25,000 Boepd of production when it closes in February AND it adds a lot of "Running Room".
2. The Company's Carbon Capture business should draw more of Wall Street's attention.
Trends set to shape oil and gas this year. E&E News.
After posting record profits in 2022, oil and gas companies say they’re preparing to ramp up investments in clean energy and new technology this year. The industry’s plans will get a boost from the Inflation Reduction Act, the massive climate law that includes $369 billion in tax credits and other incentives to promote technologies such as carbon capture and low-emissions sources of fuel and power. At the same time, the oil industry is being criticized for not spending more of its profits on renewables and low-carbon energy. Here are three trends to watch with oil and gas in 2023: renewable and certified gas; Big Oil and CCS; LNG outlook.
3. Talo's operating cash flow should approach $1 billion this year.
Talos Energy (TALO) Update - Jan 5
Talos Energy (TALO) Update - Jan 5
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Talos Energy (TALO) Update - Jan 5
Great News!
HOUSTON, Jan. 3, 2023 /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced that the Company's Lime Rock and Venice prospects both successfully discovered commercial quantities of oil and natural gas during sequential drilling operations in the fourth quarter of 2022. Talos holds a 60% working interest in the two deepwater discoveries, both of which are located near the Company's 100% owned and operated Ram Powell platform, where future production from both wells will flow via subsea tiebacks.
Lime Rock and Venice Highlights:
78 feet and 72 feet of net hydrocarbon pay in the primary targets at Lime Rock and Venice, respectively, with excellent geologic qualities; Talos collected pressure, fluid and core samples from the wells to confirm the discoveries.
Expected combined gross production rates in-line with pre-drill estimates of approximately 15-20 thousand barrels of oil equivalent per day ("MBoe/d"); the two wells will produce through a shared riser system at the Ram Powell facility.
Expected combined gross recoverable resources in-line with pre-drill estimates of 20-30 million barrels of oil equivalent ("MMBoe"), averaging approximately 40% oil and 60% liquids.
Expected completion operations in the second half of 2023, with first production from both wells by the first quarter of 2024.
Subsea tieback distance to the Ram Powell facility of 9 miles for the Lime Rock discovery and 4 miles for the Venice discovery.
Talos will collect volume-based production handling fees ("PHA fees") from non-operated partners in both discoveries.
Talos President and Chief Executive Officer Timothy S. Duncan commented: "I'm proud of our team for starting our deepwater drilling campaign with consecutive early successes. These two discoveries are case studies of the exciting potential that infrastructure-led development can bring in the U.S. Gulf of Mexico. For Talos, that translates to providing material production and cash flow in 2024 and beyond while reducing our operating cost structure through PHA fees and our carbon intensity through low emission subsea production. Demonstrating our ability to successfully leverage existing infrastructure also reinforces the strategic merits of our pending acquisition of EnVen Energy Corporation, which will double our deepwater infrastructure footprint by adding six major facilities. Ram Powell provides a blueprint for future optimization, development and exploration potential around those assets and our own."
The Lime Rock and Venice discoveries are representative of the Company's strategy of utilizing infrastructure acquired through active business development as a cornerstone for the Company's organic growth strategy. Following its installation as the deepest production facility in the world at the time, Ram Powell produced approximately 250 MMBoe until Talos acquired the asset in 2018. The Company then initiated numerous optimization projects that increased production rates, reduced costs and initiated a third-party production handling agreement. Simultaneously, Talos applied proprietary seismic reprocessing techniques to multiple recent vintage seismic surveys to identify new drilling prospects near Ram Powell, including Lime Rock and Venice.
The Lime Rock prospect was acquired in Lease Sale 256 in November of 2020 and is located approximately 9 miles from the Ram Powell facility. The Venice prospect was identified within the existing Ram Powell unit acreage approximately 4 miles from the Ram Powell facility. Talos originally held a 100% working interest in both prospects prior to successful farm-downs to achieve its targeted 60% working interest. The Company expects the Lime Rock and Venice discoveries to bring Ram Powell's production rates to levels last seen approximately 15 years ago.
Lime Rock and Venice are the first two deepwater exploitation wells in the Company's current open-water rig program that started in the fourth quarter of 2022 and which will continue in the first half of 2023 with the Rigolets and Lisbon prospects, among others. Separately, Talos expects results from its operated Mount Hunter development well and its non-operated Puma West exploration well in the first quarter of 2023. The Company's non-operated Pancheron exploration well is also expected to spud in the first half of 2023.
ABOUT TALOS ENERGY
Talos Energy (NYSE: TALO) is a technically driven independent exploration and production company focused on safely and efficiently maximizing long-term value through its operations, currently in the United States and offshore Mexico, both through upstream oil and gas exploration and production and the development of carbon capture and sequestration opportunities. As one of the Gulf of Mexico's largest public independent producers, we leverage decades of technical and offshore operational expertise towards the acquisition, exploration and development of assets in key geological trends that are present in many offshore basins around the world. With a focus on environmental stewardship, we are also utilizing our expertise to explore opportunities to reduce industrial emissions through our carbon capture and sequestration initiatives both in and along the coast of the U.S. Gulf of Mexico. For more information, visit www.talosenergy.com.
HOUSTON, Jan. 3, 2023 /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced that the Company's Lime Rock and Venice prospects both successfully discovered commercial quantities of oil and natural gas during sequential drilling operations in the fourth quarter of 2022. Talos holds a 60% working interest in the two deepwater discoveries, both of which are located near the Company's 100% owned and operated Ram Powell platform, where future production from both wells will flow via subsea tiebacks.
Lime Rock and Venice Highlights:
78 feet and 72 feet of net hydrocarbon pay in the primary targets at Lime Rock and Venice, respectively, with excellent geologic qualities; Talos collected pressure, fluid and core samples from the wells to confirm the discoveries.
Expected combined gross production rates in-line with pre-drill estimates of approximately 15-20 thousand barrels of oil equivalent per day ("MBoe/d"); the two wells will produce through a shared riser system at the Ram Powell facility.
Expected combined gross recoverable resources in-line with pre-drill estimates of 20-30 million barrels of oil equivalent ("MMBoe"), averaging approximately 40% oil and 60% liquids.
Expected completion operations in the second half of 2023, with first production from both wells by the first quarter of 2024.
Subsea tieback distance to the Ram Powell facility of 9 miles for the Lime Rock discovery and 4 miles for the Venice discovery.
Talos will collect volume-based production handling fees ("PHA fees") from non-operated partners in both discoveries.
Talos President and Chief Executive Officer Timothy S. Duncan commented: "I'm proud of our team for starting our deepwater drilling campaign with consecutive early successes. These two discoveries are case studies of the exciting potential that infrastructure-led development can bring in the U.S. Gulf of Mexico. For Talos, that translates to providing material production and cash flow in 2024 and beyond while reducing our operating cost structure through PHA fees and our carbon intensity through low emission subsea production. Demonstrating our ability to successfully leverage existing infrastructure also reinforces the strategic merits of our pending acquisition of EnVen Energy Corporation, which will double our deepwater infrastructure footprint by adding six major facilities. Ram Powell provides a blueprint for future optimization, development and exploration potential around those assets and our own."
The Lime Rock and Venice discoveries are representative of the Company's strategy of utilizing infrastructure acquired through active business development as a cornerstone for the Company's organic growth strategy. Following its installation as the deepest production facility in the world at the time, Ram Powell produced approximately 250 MMBoe until Talos acquired the asset in 2018. The Company then initiated numerous optimization projects that increased production rates, reduced costs and initiated a third-party production handling agreement. Simultaneously, Talos applied proprietary seismic reprocessing techniques to multiple recent vintage seismic surveys to identify new drilling prospects near Ram Powell, including Lime Rock and Venice.
The Lime Rock prospect was acquired in Lease Sale 256 in November of 2020 and is located approximately 9 miles from the Ram Powell facility. The Venice prospect was identified within the existing Ram Powell unit acreage approximately 4 miles from the Ram Powell facility. Talos originally held a 100% working interest in both prospects prior to successful farm-downs to achieve its targeted 60% working interest. The Company expects the Lime Rock and Venice discoveries to bring Ram Powell's production rates to levels last seen approximately 15 years ago.
Lime Rock and Venice are the first two deepwater exploitation wells in the Company's current open-water rig program that started in the fourth quarter of 2022 and which will continue in the first half of 2023 with the Rigolets and Lisbon prospects, among others. Separately, Talos expects results from its operated Mount Hunter development well and its non-operated Puma West exploration well in the first quarter of 2023. The Company's non-operated Pancheron exploration well is also expected to spud in the first half of 2023.
ABOUT TALOS ENERGY
Talos Energy (NYSE: TALO) is a technically driven independent exploration and production company focused on safely and efficiently maximizing long-term value through its operations, currently in the United States and offshore Mexico, both through upstream oil and gas exploration and production and the development of carbon capture and sequestration opportunities. As one of the Gulf of Mexico's largest public independent producers, we leverage decades of technical and offshore operational expertise towards the acquisition, exploration and development of assets in key geological trends that are present in many offshore basins around the world. With a focus on environmental stewardship, we are also utilizing our expertise to explore opportunities to reduce industrial emissions through our carbon capture and sequestration initiatives both in and along the coast of the U.S. Gulf of Mexico. For more information, visit www.talosenergy.com.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group