Talos Energy Starts Production at Lime Rock and Venice Gulf of Mexico Discoveries

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Jan 03, 2024, 06:58 ET

HOUSTON, Jan. 3, 2024 /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced that it has successfully started oil and natural gas production at Talos's Lime Rock and Venice discoveries, located near its 100% owned and operated Ram Powell platform in the U.S. Gulf of Mexico. Talos owns a 60% working interest in both wells.

The Lime Rock and Venice wells were brought safely online in late December 2023 and have achieved an initial combined gross production rate of over 18,500 barrels of oil equivalent per day, averaging about 45% oil and 55% liquids. The estimated combined gross ultimate recoverable resources of these two discoveries are approximately 20 to 30 million barrels of oil equivalent. In addition to Talos's net production, we will collect volume-based production handling fees ("PHA fees") from non-operated partners in both discoveries.

The Lime Rock prospect was acquired in Lease Sale 256 in November 2020 and is approximately seven miles from the Ram Powell facility. The Venice prospect was identified within the existing Ram Powell unit acreage approximately three miles from the Ram Powell facility. Talos initially held a 100% working interest in both prospects before successful farm-downs to achieve its targeted 60% working interest.

Talos President and Chief Executive Officer Timothy S. Duncan commented: "The safe start-up of Lime Rock and Venice in less than 12 months is an extraordinary achievement by our operations team, which included new subsea installation and facility upgrade work. These prospects exemplify our strategy of utilizing purchased infrastructure and seismic imaging technology expertise to identify new and valuable investment opportunities to grow reserves and production to meet growing energy demand. With these production additions, the Ram Powell facility is expected to achieve the highest combined sustainable production rate since approximately 15 years ago. Demonstrating our ability to successfully leverage existing infrastructure also provides a blueprint for future optimization, development, and exploration opportunities around our existing and potential new assets."

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, changes in market conditions affecting the oil and gas industry or long-term oil and gas price levels; political or regulatory developments; reservoir performance; the outcome of future exploration efforts; timely completion of development projects; technical or operating factors; the uncertainty inherent in projecting ultimate recoverable resources and future rates of production and cash flows 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, including project plans, production rates and resource recoveries, 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. References to "recoverable resources," "oil-equivalent barrels," and other quantifies of oil and gas include estimated quantities that are not yet classified as proved reserves under SEC definitions.

SOURCE Talos Energy