Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced that the Katmai West #2 well located in the Ewing Bank area of the U.S Gulf of Mexico successfully encountered commercial quantities of oil and natural gas.
Key Highlights
- The Katmai West #2 well was drilled significantly under budget and ahead of schedule to a true vertical depth of approximately 27,000 feet.
- Encountered the primary target sand full-to-base with over 400 feet of gross hydrocarbon pay and excellent rock properties in line with pre-drill expectations.
- Expected deliverability from the well is in line with pre-drill estimates of approximately 15 – 20 thousand barrels of oil equivalent per day ("MBoe/d") gross.
- The strong performance from Katmai West #1 well, and the successful appraisal from Katmai West #2 well, have nearly doubled the Proved EUR (estimated ultimate recovery) of Katmai West field to approximately 50 million barrels of oil equivalent ("MMBoe") gross, which further affirms the company's expected total resource potential of approximately 100 MMBoe gross.
- First production is expected in the late second quarter 2025.
The drillship West Vela began drilling the Katmai West #2 well in late October 2024. Talos plans to case and suspend the well by late January 2025 while the Company finalizes completion plans to be executed in the second quarter 2025. Production is expected to start later that same quarter. The well will be connected to the existing subsea infrastructure that flows to the Tarantula facility, which has been expanded to increase capacity to 35 MBoe/d. Talos anticipates the Katmai wells will be rate-constrained under the upgraded capacity, allowing for extended flat-to-low decline production from the facility. Talos, as operator, holds a 50% working interest, with entities managed by Ridgewood Energy Corporation holding the other 50% in Katmai West field. Talos is the 100% owner and operator of the Tarantula facility.
Talos's Interim Co-President, Executive Vice President and Head of Operations John Spath stated, "We are proud of our team for achieving these successful drilling results. Delivering this high-impact deepwater well, approximately 35% under budget and more than a month ahead of schedule, demonstrates our ability to efficiently execute complex projects while maintaining top safety and environmental standards. We remain optimistic about the greater Katmai area, as these results align with our pre-drill expectations about its gross resource potential. We look forward to having this well on production and believe it positions us for strong value creation as we move forward into 2025."