Talos Energy Announces Portfolio Additions from Lease Sale Results and Execution of Acreage Consolidation Agreements

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Dec 22, 2023, 06:58 ET

HOUSTON, Dec. 22, 2023 /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced that it was named as the apparent high bidder on 13 deepwater blocks comprising approximately 74,000 gross acres (approximately 48,000 net acres) in the U.S. Gulf of Mexico Outer Continental Shelf Federal Lease Sale 261 held by the Bureau of Ocean Energy Management ("BOEM") on December 20, 2023. Leases for all blocks remain subject to normal-course, formal award by the Department of the Interior.

Separately, Talos executed Lease Exchange Agreements with BP Exploration & Production Inc. ("bp"), Chevron U.S.A. Inc. ("Chevron"), and Hess Corporation ("Hess") under which the parties are consolidating acreage across 15 blocks in the deepwater Green Canyon area of the U.S. Gulf of Mexico. The consolidation provides the parties the ability to execute prospective drilling opportunities more efficiently upon developing the contributed acreage, which includes several identified prospects. Talos's participation in these blocks is expected to be between 15% and 20%.

Talos President and Chief Executive Officer Timothy S. Duncan commented: "I am pleased with the results of our bidding efforts and for achieving broad success with a high level of activity in Lease Sale 261, adding acreage and prospects to Talos's robust portfolio. The proximity of these prospects to our existing assets, including Ram Powell, Pompano, Prince, and Brutus facilities, bolsters our infrastructure-led, near-field strategy in the Gulf of Mexico while providing opportunities to lower the overall carbon intensity of our assets over time.

"Furthermore, as we look to future growth opportunities, we believe that consolidating prospective lease positions with bp, Chevron, and Hess validates the potential of the acreage we are contributing and could lead to the efficient development of reliable, responsible energy. Combined with our recently announced Repsol joint venture, our lease sale activity and acreage consolidation agreements provide Talos with inventory depth and lay the groundwork for future exploitation and exploration opportunities. We are excited about the resource potential these efforts may contribute to our drilling programs," concluded Duncan.

ABOUT TALOS ENERGY
Talos Energy (NYSE: TALO) is a technically driven, innovative, independent energy company focused on safely and efficiently maximizing long-term value through its Upstream Exploration & Production and Low Carbon Solutions businesses. We currently operate in the United States and offshore Mexico. We leverage decades of technical and offshore operational expertise to acquire, explore, and produce assets in key geological trends while developing opportunities to reduce industrial emissions through carbon capture and storage projects along the U.S. Gulf Coast. For more information, visit www.talosenergy.com.

INVESTOR RELATIONS CONTACT
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FORWARD-LOOKING STATEMENTS
This communication may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this communication, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this communication, the words "will," "could," "believe," "anticipate," "intend," "estimate," "expect," "project," "forecast," "may," "objective," "plan" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. 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 numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks include, but are not limited to, the uncertainty inherent in the consummation of the arrangements described herein, successful development of these prospects, estimating resource potential, implementing successful drilling programs, projecting future production, the possibility that the anticipated benefits of these acquisitions are not realized when expected or at all, and the other risks discussed in "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022 and "Risk Factors" in our Quarterly Reports on Forms 10-Q filed with the U.S. Securities and Exchange Commission.

Should one or more of the risks or uncertainties described herein 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 this communication 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 communication.

SOURCE Talos Energy