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Released January 22, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Among President Donald Trump's first actions in his return to office was an executive order that rescinded former President Joe Biden's 11th-hour order to block 625 million acres of offshore areas from oil and gas drilling. That's good news for companies like Talos Energy Incorporated (NYSE:TALO) (Houston, Texas), which has notched up some recent deepwater discoveries. Industrial Info is tracking more than $1.3 billion worth of active and proposed projects featuring Talos' services, almost all of which has a medium-to-high chance (70% or more) of beginning construction as scheduled.
In August, Talos acquired a 21.4% interest in the Monument discovery in the Gulf of Mexico's Shenandoah Field, which is operated by Beacon Offshore Energy LLC (Houston). A $100 million drilling program is expected to kick off in the second quarter, to be supported by $150 million in subsea infrastructure and a $75 million pipeline tieback to the Shenandoah platform. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Production Database can read detailed project reports on the drilling program, subsea infrastructure and pipeline tieback.
"We estimate proved plus probable gross reserves of approximately 115 million barrels of oil equivalent (BOE) and expected flow production back to the Shenandoah production facility, which Beacon is expected to start up by mid-2025," said Joseph Mills, then the interim chief executive officer of Talos, in the company's most recent quarterly earnings-related conference call. "We expect first production of Monument by late 2026, with incremental upside of another 25 up to 35 million BOE from an additional, prospective drilling location."
Last week, Talos announced its Katmai West 2 well in the Ewing Bank area of the Gulf "successfully encountered commercial quantities of oil and natural gas." The well, which was drilled under budget and ahead of schedule, is expected to deliver 15,000 to 20,000 BOE per day, which is in line with pre-drill estimates. First production from Katmai West 2 is expected in the late second quarter 2025.
"The strong performance from Katmai West 1 well, and the successful appraisal from Katmai West 2 well, have nearly doubled the Proved EUR [estimated ultimate recovery] of Katmai West field to approximately 50 million BOE gross, which further affirms the company's expected total resource potential of approximately 100 million BOE gross," Talos said in a press release.
Talos began work in October on a $15 million topside upgrade to the Tarantula offshore platform to tie-in any production from Katmai West 2; the project is set to be completed toward the end of the year. Subscribers can learn more from a detailed project report.
Also in the Ewing Bank, Talos hopes to begin drilling two production wells in Block 953 that would be connected to its Megalodon platform via a 7.5-mile pipeline tieback. Preliminary data indicates an estimated gross recoverable resource potential of roughly 15 million to 25 million BOE, with an initial gross production rate of 8,000 to 10,000 BOE per day. Subscribers can read detailed reports on the production wells and pipeline tieback.
"Obviously, the Gulf of Mexico is our backyard, and we know it extremely well and remain very active in it," Mills said in the conference call. "The financial assurance plan that the Biden administration rolled out certainly put a little bit of a chilling effect on mergers and acquisitions in the Gulf. Some of the uncertainty around how that program [was] administered caused some of the majors to pull back in terms of some of their divestitures."
In April, Biden's Bureau of Ocean Energy Management (BOEM) finalized a rule requiring federal offshore oil and natural gas leaseholders in the U.S. Gulf of Mexico to provide an estimated $6.9 billion in additional financial assurances to cover offshore decommissioning costs. Called a financial assurance plan, its goal was to limit the number of abandoned wells in the Gulf's Outer Continental Shelf.
Mills said the selling of non-core assets by other companies in the Gulf were "a big source of opportunity" for Talos. "Now, with the Trump administration coming in, it is a little unclear how that's going to affect the financial assurance plan."
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed reports for active and planned projects across the U.S. featuring Talos.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
In August, Talos acquired a 21.4% interest in the Monument discovery in the Gulf of Mexico's Shenandoah Field, which is operated by Beacon Offshore Energy LLC (Houston). A $100 million drilling program is expected to kick off in the second quarter, to be supported by $150 million in subsea infrastructure and a $75 million pipeline tieback to the Shenandoah platform. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Production Database can read detailed project reports on the drilling program, subsea infrastructure and pipeline tieback.
"We estimate proved plus probable gross reserves of approximately 115 million barrels of oil equivalent (BOE) and expected flow production back to the Shenandoah production facility, which Beacon is expected to start up by mid-2025," said Joseph Mills, then the interim chief executive officer of Talos, in the company's most recent quarterly earnings-related conference call. "We expect first production of Monument by late 2026, with incremental upside of another 25 up to 35 million BOE from an additional, prospective drilling location."
Last week, Talos announced its Katmai West 2 well in the Ewing Bank area of the Gulf "successfully encountered commercial quantities of oil and natural gas." The well, which was drilled under budget and ahead of schedule, is expected to deliver 15,000 to 20,000 BOE per day, which is in line with pre-drill estimates. First production from Katmai West 2 is expected in the late second quarter 2025.
"The strong performance from Katmai West 1 well, and the successful appraisal from Katmai West 2 well, have nearly doubled the Proved EUR [estimated ultimate recovery] of Katmai West field to approximately 50 million BOE gross, which further affirms the company's expected total resource potential of approximately 100 million BOE gross," Talos said in a press release.
Talos began work in October on a $15 million topside upgrade to the Tarantula offshore platform to tie-in any production from Katmai West 2; the project is set to be completed toward the end of the year. Subscribers can learn more from a detailed project report.
Also in the Ewing Bank, Talos hopes to begin drilling two production wells in Block 953 that would be connected to its Megalodon platform via a 7.5-mile pipeline tieback. Preliminary data indicates an estimated gross recoverable resource potential of roughly 15 million to 25 million BOE, with an initial gross production rate of 8,000 to 10,000 BOE per day. Subscribers can read detailed reports on the production wells and pipeline tieback.
"Obviously, the Gulf of Mexico is our backyard, and we know it extremely well and remain very active in it," Mills said in the conference call. "The financial assurance plan that the Biden administration rolled out certainly put a little bit of a chilling effect on mergers and acquisitions in the Gulf. Some of the uncertainty around how that program [was] administered caused some of the majors to pull back in terms of some of their divestitures."
In April, Biden's Bureau of Ocean Energy Management (BOEM) finalized a rule requiring federal offshore oil and natural gas leaseholders in the U.S. Gulf of Mexico to provide an estimated $6.9 billion in additional financial assurances to cover offshore decommissioning costs. Called a financial assurance plan, its goal was to limit the number of abandoned wells in the Gulf's Outer Continental Shelf.
Mills said the selling of non-core assets by other companies in the Gulf were "a big source of opportunity" for Talos. "Now, with the Trump administration coming in, it is a little unclear how that's going to affect the financial assurance plan."
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed reports for active and planned projects across the U.S. featuring Talos.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
