Talos Energy Clinches Gulf of Mexico Acreage, Forges Lease Exchange Agreements With Oil Giants

Talos Energy Inc TALO disclosed being named as the apparent high bidder on 13 deepwater blocks in the U.S. Gulf of Mexico. 

The blocks comprise around 74,000 gross acres (about 48,000 net acres) in the U.S. Gulf of Mexico Outer Continental Shelf Federal Lease Sale 261 held by the Bureau of Ocean Energy Management (BOEM).

Separately, Talos executed Lease Exchange Agreements with BP P.L.C. BP BP Exploration & Production Inc., Chevron Corporation CVX Chevron U.S.A. Inc., and Hess Corporation  HES, under which the parties are consolidating acreage across 15 blocks in the deepwater Green Canyon area of the U.S. Gulf of Mexico. Talos's participation in these blocks is expected to be between 15% and 20%.

Timothy S. Duncan, President and CEO said, "The proximity of these prospects to our existing assets, including Ram Powell, Pompano, Prince, and Brutus facilities, bolsters our infrastructure-led, near-field strategy in the Gulf of Mexico while providing opportunities to lower the overall carbon intensity of our assets over time."

"Combined with our recently announced Repsol joint venture, our lease sale activity and acreage consolidation agreements provide Talos with inventory depth and lay the groundwork for future exploitation and exploration opportunities," added Duncan. 

Earlier this month, the company stated that it was expecting the first production ahead of schedule by the end of 2023 for Venice and Lime Rock discoveries. 

The company reaffirmed its Q4 average daily production of 66.5 - 68.5 thousand barrels of oil equivalent daily.

Also Read: Talos Energy Names New CFO As Shannon Young Resigns

Price Action: TALO shares are trading higher by 0.60% at $14.35 on the last check Friday.