Exhibit 99.1
TALOS ENERGY PROVIDES UPDATE ON ZAMA APPRAISAL
Houston, January 23, 2019 – Talos Energy Inc. (“Talos” or the “Company”) (NYSE: TALO) today provided an update on the Zama appraisal in Block 7 offshore Mexico. Talos is the operator of Block 7 in a consortium (the “Consortium”) with its partners Sierra Oil and Gas S. de R.L. de C.V. (“Sierra”) and Premier Oil Plc (“Premier”).
TheZama-2 appraisal well is the first of three appraisal penetrations drilled by the Consortium to better define the resource potential of the Zama discovery. TheZama-2 appraisal penetration was drilled in adown-dip location approximately 1.3 miles (2.1 kilometers) to the north of theZama-1 discovery well in an effort to confirm the geological model and define theoil-water contact. This initial phase of the appraisal program was successfully and safely completed on January 20, 2019, approximately 28 days ahead of schedule and 25% below initially projected costs. The well reached the top of the Zama reservoir at approximately 10,759 feet (3,279 meters) of true vertical depth (“TVD”) and has encountered the following:
| | • | | A contiguous Zama sandstone interval of 1,676 feet (511 meters) of gross TVD sand, materially thicker sand than theZama-1 discovery well and slightly thicker than thepre-drill estimates for theZama-2 well. The well also encountered several other thick, wet sands of similar age directly beneath the main Zama horizon for an aggregate total of approximately 2,350 feet (716 meters) TVD of high quality Upper Miocene sands with rock properties similar to analogous Upper Miocene sands in the US Gulf of Mexico. |
| | • | | TheZama-2 penetration logged approximately 581 feet (177 meters) of gross TVD oil pay before reaching theoil-water contact, preliminarily estimated at 11,254 feet (3,430 meters) TVD, approximately 100 feet (30 meters), deeper than the anticipated depth of theoil-water contact based on the geophysical signature called a “flat-spot.” The preliminaryNet-to-Gross factor in this pay interval ranges from68-73%, with rock properties in line with those at theZama-1 location. |
| | • | | Preliminary pressure data helped confirm theoil-water contact depth, complementing the traditional logging results. The pressure data also indicates that this northern section of the reservoir is connected to theZama-1 discovery well. TheZama-2 vertical sidetrack and theZama-3 well will provide additional information about the reservoir connectivity and consistency. |
The last objective of theZama-2 well was to test a deeper exploration prospect called Marte. Marte was designed to inexpensively test a higher risk stratigraphic trap, and although it encountered high quality sands of consistent geological age, pressures and quality, they were not hydrocarbon bearing. The information gathered, however, helps the Consortium with the evaluation of the aquifer support of the main Zama reservoir and other possible prospects on Block 7. The testing of Marte, initially expected to cost approximately $10.0 million, was significantly under budget and only cost approximately $2.5 million, both on a gross basis. The entire cost of theZama-2 well, including the additional cost to test the Marte prospect, will be recoverable when commercial production from Zama commences.
President and Chief Executive Officer Timothy S. Duncan commented, “We are very pleased with the results of theZama-2 well as we were able to achieve our primary goals of understanding the depositional environment and the presence of thick sand bodies needed for robust aquifer support, both of which help with ultimate recovery. We also confirmed that this section of the reservoir has similar or better rock properties as compared to theZama-1 discovery well and that the pressure information indicates connectivity toZama-1. Perhaps most importantly, theoil-water contact was encountered at the predicted depth, if not slightly deeper.”
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| TALOS ENERGY INC. | | 333 Clay St., Suite 3300, Houston, TX 77002 |
