Talos, Premier Make 'World Class' Mexican Oil Find
Houston-based Talos Energy has made a world-class oil discovery in shallow water on block 7 offshore Mexico, it said July 12.
Talos is operator, partnered by Premier and Mexico's Sierra Oil & Gas, together drilled Zama-1 exploration well, the first offshore exploration well drilled by the private sector in Mexico’s history; the well also found some associated gas.
Premier said that preliminary analysis indicates: initial gross original oil in place estimates for the Zama-1 well in excess of 1 billion barrels, which could extend into a neighbouring block; a contiguous gross oil bearing interval of over 335 metres (1,100 feet), with up to 200 metres of net oil bearing reservoir in Upper Miocene sandstones with no water contact.
Talos went further, saying initial gross original oil in place estimates for the Zama-1 range from 1.4 to 2.0 billion barrels, exceeding pre-drill estimates.
Both firms said that tests of hydrocarbon samples recovered to the surface contain light oil with API of between 28° and 30° plus some associated gas
The well spudded on 21 May, in 166 meters water-depth some 60km offshore the port of Dos Bocas, Veracruz state, in the Gulf of Mexico, reached an initial shallow target vertical depth of 3,383 metres (11,100 feet). Talos is currently setting a liner to protect the discovered reservoirs, prior to drilling deeper exploratory objectives to a total vertical depth of approximately 4,200 metres (14,000 feet).
Premier CEO Tony Durrant said: "The oil discovered in the Zama-1 well is an extremely important event for Premier, the joint venture and for Mexico and we look forward to working with the Government and our partners to realise the full potential of this exciting discovery.”
Talos holds a 35% participation interest with Sierra and Premier holding 40% and 25% participation interests, respectively.
Talos Energy CEO Tim Duncan said: "We believe this discovery represents exactly what the energy reforms intended to deliver: new capital, new participants and a spirit of ingenuity that leads to local jobs and government revenues for Mexico. We are eager to begin appraising this discovery and drilling more unique opportunities. The future is bright for offshore Mexico for years to come.”
The block was awarded to Talos last year, following Mexico's first international licensing round that began 2015.
Mark Smedley