Talos Energy, Inc. (NYSE:TALO) shares are trading lower on Thursday. The company disclosed that its Ewing Bank 953 well has successfully discovered commercial quantities of oil and natural gas.
Additionally, Talos has agreed to participate in the Sebastian prospect, which is currently being drilled in the Mississippi Canyon Block 387 of the U.S. Gulf of Mexico.
Talos holds a 33.3% working interest, with Walter Oil & Gas Corp. holding 56.7% and Gordy Oil Company 10%.
The EW 953 well has discovered approximately 127 feet of net pay at 19,000 feet TVD, with an estimated gross recoverable potential of 15–25 million barrels of oil equivalent (MMBoe).
Initial production is expected at 8–10 thousand barrels of oil equivalent per day (MBoe/d) by mid-2026. The well will be tied back to the South Timbalier 311 Megalodon platform.
Drilling at the Sebastian prospect, started in late August 2024, targets the Upper Miocene K-1 reservoir at about 12,000 feet TVD. It is estimated to hold 9–16 MMBoe, with an initial production rate of 6–10 MBoe/d. Results are expected by the late fourth quarter of 2024.
Talos Interim President and Chief Executive Officer Joe Mills said, "This discovery follows a series of successful single-well subsea exploitation wells tied back to Talos-owned existing infrastructure, like Venice and Lime Rock, Sunspear, and Claiborne sidetrack."
"Additionally, we were able to include the Sebastian prospect in our second-half 2024 drilling portfolio without requiring updates to our capital expenditures guidance for the year."
Last month, Talos Energy announced that Tim Duncan has resigned as President and Chief Executive Officer, effective August 29, 2024.
According to Benzinga Pro, TALO stock has lost over 37% in the past year. Investors can gain exposure to the stock via Invesco S&P SmallCap Energy ETF (NASDAQ:PSCE).
Price Action: TALO shares are down 0.42% at $10.77 at the last check Thursday.
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