Talos Energy and joint venture partners discovered oil at the Zama-1 exploration well in offshore Mexico Block 7, the American exploration and production company said.
The Zama-1 well is the first offshore exploration well drilled by the private sector in Mexico’s history. The well, located in 546 feet of water and approximately 37 miles from the Port of Dos Bocas, has reached an initial shallow target vertical depth of approximately 11,100 feet, Talos said in a statement.
"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,” said Tim Duncan, president and chief executive officer. “We are eager to begin appraising this discovery and drilling more unique opportunities. The future is bright for offshore Mexico for years to come.”
Talos, the operator of the licence, holds a 35 per cent participation interest with Sierra Oil and Gas and Premier Oil holding 40 per cent and 25 per cent participation interests, respectively.
The well spud May 21, 2017 utilising the Ensco 8503, a moored floating drilling rig, Talos said. The operator is currently setting a liner to protect the discovered reservoirs prior to drilling deeper exploratory objectives to a total vertical depth of approximately 14,000 feet.
Pablo Medina, Wood Mackenzie's senior analyst, Latin America Upstream said the Zama discovery by Talos is the most important achievement so far of the Mexico's Energy Reform. “According to our data, it is one of the 15 largest shallow-water fields discovered globally in the past 20 years. On top of this, Zama is the first find by a private company in Mexico in almost 80 years," he said.
Talos said there are no plans for immediate well testing and further evaluation will be required to calibrate the well with the existing reprocessed seismic to determine future plans and optimal follow up locations to define the extent of the discovered resource.
"This success is the culmination of a tremendous amount of work by our technical and operations teams in concert with our consortium partners Sierra and Premier,” Duncan continued. "The team deserves a great deal of credit for their conviction in this opportunity and their leadership in making Talos the first private sector operator to receive acreage and drill a successful offshore exploration in Mexico following the landmark energy reforms of 2014.”
During 2015, the company, together with its consortium partners Sierra and Premier, executed two production sharing contracts with Mexico’s upstream regulator, the National Hydrocarbons Commission, for Block 2 and Block 7.
The contracts were awarded to the consortium during the first tender of Mexico’s oil and natural gas fields in over 80 years. Block 2 and Block 7 are located in the Sureste Basin, a prolific proven hydrocarbon province, in the shallow waters off the coast of Mexico’s Veracruz and Tabasco states, respectively.
The two blocks contain approximately 162,904 gross acres with numerous high impact prospects in well-established and emerging plays.