Talos Energy Inc. ("Talos") (NYSE:TALO) today announced that its Ewing Bank 953 well ("EW 953 well") successfully discovered commercial quantities of oil and natural gas. Separately, Talos entered into an agreement to participate in the Sebastian prospect, currently drilling in the Mississippi Canyon Block 387 of the U.S. Gulf of Mexico.

The EW 953 well encountered approximately 127 feet of net pay in the target sand at approximately 19,000 feet true vertical depth ("TVD"). Preliminary data indicates an estimated gross recoverable resource potential of approximately 15 – 25 million barrels of oil equivalent ("MMBoe") from a single subsea well with an initial gross production rate of 8 – 10 thousand barrels of oil equivalent per day ("MBoe/d"). First production is expected in mid-2026. Current plans are for the well to be tied back to the South Timbalier 311 Megalodon host platform, which Talos partially owns. Talos holds 33.3% working interest ("W.I.") in the EW 953 well, with Walter Oil & Gas Corp. (Operator) holding 56.7% W.I. and Gordy Oil Company holding 10% W.I.

The Sebastian prospect began drilling in late August 2024, targeting the regionally prolific Upper Miocene K-1 reservoir at approximately 12,000 feet TVD. This amplitude-supported prospect contains an estimated gross resource potential of 9 – 16 MMBoe with a potential initial production rate of 6 – 10 MBoe/d. Results are expected late fourth quarter 2024. If successful, the Sebastian prospect will be tied back to the Delta House facility, where Talos has a partial interest. Murphy Oil Corporation will be the operator.