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Talos Energy in a Joint Venture to Explore the Mexican Waters

Talos Energy together with London based Premier Energy PLC and Sierra Oil and Gas of Mexico are united in a Joint Venture for the Exploration of the Mexican water. The venture marks the beginning of the opening of Mexican Waters to private investors something that has never been witnessed in Mexico in the last 80 years. The exploration and exploitation of oil and gas in the Mexican waters was nationalized by the Mexican government in the year 1938 and ever since then no privately owned company has ever been allowed to drill oil in the region. Previously only the State-owned Petroleos Mexicanos was the only firm that was allowed to control the oil and natural gas reserves in country. The exploration is a historical event and began on May 21 at the ZAMA-1 well which is located at the Surest Basin off the coast of Tabasco State.

The ZAMA well is estimated to contain between 100 to 500 barrels of crude oil. The exploration exercise is estimated to cost more than 16 million dollars and is going to be funded Premier Company. The three companies won the prospective rights to explore the Mexican water after successfully winning a bid that was advertised by the Mexican government which intends to save the ailing oil industry.

Talos Energy is set to be the Well operator and hold a 35% stake in the venture. Premier Company which is the main funder of the project and the expected product distributor holds 25 % of the stake. The remaining 40% as required by the law belongs to Sierra Company which is a Mexican owned company. The reforms made on the law of the Mexican Oil and Gas industry requires that the home country hold the largest share in any joint venture. The venture has been projected to have a higher probability of success by investment groups and research firms.

About Talos Energy

Talos Energy LLC is a privately owned oil and gas company that is based in Houston. Talos specializes in the exploration and acquisition of oil and gas resources in areas around the Gulf of Mexico and the Gulf Coast. The company received its funding from its affiliated companies which are Apollo Global Management, LLC, Talos Management and Riverstone Holdings.

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