News & Press Releases
Talos Energy LLC Announces Initial Production From The Tornado II Well
TX January 16, 2018 — Talos
Energy LLC ("Talos” or the "Company”) today announced initial production from the Tornado II deep water well (GC 281 #2ST), located in the Phoenix Field of the Green Canyon area of the Gulf of Mexico in approximately 2,700 feet of water. The Tornado II drilling program consisted of an exploratory test penetration in a fault block adjacent to the Company’s initial Tornado discovery in 2016, followed by the Tornado II producer to delineate and further develop the initial reservoir.
Initial production testing of the well commenced on December 15, 2017. During the two-week test period, gross production rates exceeded 12,350 barrels of oil equivalent per day ("boepd”), which is 83% oil. Coupled with the first Tornado well, the Company plans to flow the wells at a combined gross rate of 24,000 - 27,000 boepd. Talos owns 65% of the well and is the operator. The Tornado wells flow through the existing Phoenix Field subsea infrastructure into the Helix Producer I, a dynamically positioned floating production unit on the adjacent lease, Green Canyon block 237. The existing field infrastructure allows for the expedited and capital efficient hook-up of this and future exploitation and development projects. The original Tornado discovery well produced 7.4 million gross barrels of oil equivalent in the first 15 months of production prior to the Tornado II well coming online. The minority partner in the Tornado and Tornado II wells is Deep Gulf Energy III, LLC, with a 35% working interest.
"The Talos Energy team continues to deliver positive results with compelling economics in the Tornado area of the Phoenix Field,” said Tim Duncan, President and Chief Executive Officer of Talos Energy LLC. "I am proud of the achievements made by our technical and operational teams, who worked collaboratively in a safe and efficient manner to deliver this project six weeks ahead of schedule and under budget. We welcome this success as we focus on closing our previously announced combination with Stone Energy Corporation to create a premier off-shore focused exploration and production company.”
ABOUT TALOS ENERGY LLC
Talos is a technically driven independent exploration and production company with operations in the United States Gulf of Mexico and in the shallow waters off the coast of Mexico. Our focus in the United States Gulf of Mexico is the exploration, acquisition, exploitation and development of shallow and deep water assets near existing infrastructure. The shallow waters off the coast of Mexico provide us high impact exploration opportunities in an emerging basin. The Company’s website is located at www.talosenergyllc.com.
The information in this press release includes "forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this press release, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the exploration for and development, production, gathering and sale of oil, natural gas and NGLs. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, and the other risks described in "Item 1A, Risk Factors” in Talos Production LLC’s 2016 Annual Report.
Should one or more of the risks or uncertainties described in Talos Production LLC’s 2016 Annual Report occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in the Talos Production LLC’s 2016 Annual Report are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.
CONTACT: INQUIRIES OF THE COMPANY
Timothy S. Duncan
President & CEO