The last time a private company sunk an oil well in Mexico was eighty years ago. The new offshore well is an attempt to bring foreign competitors into the energy markets. Mexico’s Sierra Oil & Gas along with Talos Energy LLC and Premier Oil Plc have joined forces to start the drilling of the well. The only offshore explorations since 1938 have been launched by state run monopolies. This was when Mexico nationalized their oil industry.
The location of the new well is in the Sureste Basin off the state of Tabasco and the estimation on the barrels of crude it contains are from 100 to 500 million. The estimated drilling time required is ninety days with an expected cost of $16 million. The three companies were given prospecting rights in 2015 when Mexico opened their first round of bidding to private investments.
The well is significant since it is the first since the Mexican waters have been opened due to the new reform process of the country. The oil industry will be keeping close tabs on this particular well. The basins structure indicates a high geological rate of success. As the operator, Talos has a 35% stake, Sierra 40% and Premier 25%.
Talos Energy is based in Houston, Texas and is a privately held oil and gas company. They have acquired Energy Resource Technology which is a subsidiary of Helix Energy. The company is located in the gulf of Mexico and was purchased for $620 million. They average 16,155 barrels of oil each day.
Talos Energy is a portfolio company and affiliated with Riverstone Holdings and Apollo Global Management. Talos Energy has $600 million in equity that was committed in February of 2012. Talos Energy is classified as a private upstream company specializing in both gas and oil. They place their main focus on exploring and acquiring gas and oil properties located on the Gulf of Mexico and the Gulf Coast.
Apollo Global Management, Talos Management and Riverstone Holdings LLC are the main backers for Talos Energy. Their backing comes from investment funds associated with the companies.
More information can be found on Facebook.