There has been oil exploration and subsequently sinking of new offshore well in the Mexican water. This has been the first time in a period of almost 80 years that the country has allowed a foreign company back into its energy sector.
Three companies, namely sierra oil & gas that is based in Mexico, premier oil that is based in London and Houston’s Talos energy, came together and began drilling the well on May 21. This is the first time that the exploration was been carried out by a foreign body since 1928. Initially, it was ran by a state monopoly. The Zama -1 is a well found in the Surete Basin, which is off the state of Tabasco. The well holds an estimate of 100 million – 500 million barrels of crude. The three stated companies were lucky to win the rights of prospects in the year 2015; this was in the first round of bidding after Mexico voted unanimously to open its oil industry that was in bad state to foreign investors. According to the structure of the mega project, high geological chance of the project, it stands a chance to succeed. Sierra gas & oil holds 40% in the venture. Talos holds 35% while premier holds 25%.
Talos Energy LLC is a privately owned oil and gas company that is based in Houston. Talos is focused on oil exploration and gas properties. The company lays emphasis in the Gulf of Mexico and Gulf coast. It has acquired an oil and gas-producing subsidiary of Helix Energy Solution; this was acquired at a cost of $620 million. In the projected revenue this year, the company is believed to have between $475 million to $500million, and is expected to scale higher. Talos is backed by sound economic funds affiliated with Rivertone Holdings LLC, LLC (NYSE:APO), Apollo Global Management and Talon management.
Talos Energy president and CEO is very excited about the company’s steady rise and growth. He believes that combining the high cash flow and high-weighted assets with the company’s 24,000 square miles of seismic data and a team of committed professionals makes the company successful and poised to continue with the same upward trend.
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