Talos Vitality Inc. is buying a 21.4 p.c working curiosity within the Monument discovery, situated within the Walker Ridge space within the Gulf of Mexico.
Monument is a big Wilcox oil discovery situated in Walker Ridge blocks 271, 272, 315, and 316. The acquisition worth is $32 million, Talos stated in its newest earnings launch.
Monument can be developed as a subsea tie-back to the Shenandoah manufacturing facility in Walker Ridge. The Monument discovery is post-FID with appraised proved plus possible gross reserves of roughly 115 million barrels of oil equal (boe), in line with the discharge.
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First manufacturing is anticipated by late 2026 between 20,000 to 30,000 barrels of oil equal per day (boepd) gross beneath restricted move resulting from facility fee constraints. There’s an extra 25 million to 35 million boe drilling location adjoining to the invention that would prolong the useful resource and Talos’ pipeline of drill-ready alternatives, it famous.
Talos stated it expects a internet funding of roughly $25 million in 2024 and roughly $160 million over 2025 and 2026, with no modifications to its 2024 capital expenditure steering.
Different companions in Monument embody Beacon as operator with 30.0 p.c curiosity, Navitas Petroleum with 28.6 p.c, and Repsol E&P USA Inc. with 20 p.c.
Second-Quarter Earnings
In the meantime, Talos reported second-quarter manufacturing of 95.5 thousand boepd consisting of 73 p.c oil and 81 p.c liquids, which is on the excessive finish of its steering vary.
The Houston-based firm additionally posted internet revenue of $12.4 million, adjusted internet revenue of $5.2 million, and adjusted EBITDA of $344.0 million.
Talos President and CEO Tim Duncan stated, “The second quarter [of] 2024 marked our first full quarter following the closing of the QuarterNorth transaction, leading to file ranges of manufacturing, Adjusted EBITDA, and Adjusted Free Money Circulate. This achievement enabled us to stay on observe with our debt repayments whereas opportunistically shopping for again 3.8 million shares, representing two p.c of our market capitalization. Our staff’s arduous work and dedication have put us forward of schedule on our integration efforts, leveraging the benefits of our elevated scale and variety”.
“In our capital drilling program, the Lobster waterflood venture commenced water injection within the second-quarter 2024, and we anticipate a optimistic affect on manufacturing charges by 2025. We’re at the moment drilling at our non-operated Ewing Financial institution 953, with outcomes anticipated later within the third-quarter 2024. Moreover, we anticipate receiving the West Vela deepwater rig late within the third-quarter 2024, which can start drilling three consecutive high-impact subsalt wells, together with the Katmai West #2 appraisal in 2024, adopted by the Daenerys and Helms Deep prospects in 2025,” Duncan continued.
“Subsequent to the second-quarter 2024, we executed an essential transaction securing a 21.4 p.c non-operated curiosity within the Monument deepwater discovery. The Monument discovery presents a gorgeous post-FID subsea tie-back alternative with gross useful resource potential exceeding [150,000 boe], together with a possible drilling alternative past the appraised discovery. We have now constructed a significant acreage place throughout the prolific Wilcox play within the deepwater Gulf of Mexico, and Monument represents the primary of a number of potential investments on this well-established geological development. We’re happy to have added this venture to our projected 2024 capital program,” he concluded.
To contact the creator, e-mail rocky.teodoro@rigzone.com
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