Talos Energy announced in late September that the CNH – National Hydrocarbons Commission, the Mexican oil & gas regulator, approved the appraisal plan for ZAMA’s discovery. The approval of the plan is a key component necessary to begin the appraisal of ZAMA discovery. The Commission is currently reviewing the application in regards to the drilling permits which are necessary in order to start the drilling operations. Talos Energy estimated that the appraisal program will be completed by the middle of next year and that it will spud the first appraisal well in the forth quarter of this year.
The Commission approved budget of $325 million for the plan, a sum that includes about $75 million of contingent operations. The budge includes the cost of performing a drill stem test in order to gather information about the reservoir productivity and continuity, the cost of drilling wells, hole coring across the reservoir, as well as collecting a number of fluid and rock samples. Talos Energy is expecting its share of the costs to be up to $80 million for the entire campaign, before any of the contingency costs.
Timothy S. Duncan, the President and Chief Executive Officer expressed excitement over meeting another important milestone with their partners in Mexico, after the announcement of the Pre-Unitization Agreement with Permex. He also stated that the approval allows the company to maintain their schedule of investments at an accelerated pace on the Zama project in Mexico, and to begin the drilling operations on the appraisal plan by the end of 2018. The CEO Stated that it will allow the company to stay on track for their ultimate goal of achieving initial production in 2022, thus providing local jobs, materially adding to the domestic production of Mexico, and increasing government revenues to the country.
Talos Energy is an independent company that operates in the oil and gas industry in the United States, Gulf of Mexico, and in the shallow waters off the coast of Mexico. The company was established in 2012, the team behind the company having a strong track record of positive results prior to founding Talos Energy.
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