Two Gulf of Mexico oil & gas discoveries come online

While disclosing the start of oil and natural gas production from its Lime Rock and Venice discoveries, located near its 100% owned and operated Ram Powell platform in the U.S. Gulf of Mexico, Talos confirmed that these wells were brought online in late December 2023. The pair reached an initial combined gross production rate of over 18,500 barrels of oil equivalent per day, averaging about 45% oil and 55% liquids.

According to the U.S. player, the estimated combined gross ultimate recoverable resources of these two discoveries are around 20 to 30 million barrels of oil equivalent. In addition to Talos’s net production, the firm will collect volume-based production handling fees (PHA fees) from non-operated partners in both discoveries.

The company acquired the Lime Rock prospect – situated seven miles from the Ram Powell facility – in Lease Sale 256 in November 2020, while 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 selling off some of this to achieve its targeted 60% working interest.

Timothy S. Duncan, Talos President and Chief Executive Officer, 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.”

Back in 4Q 2022, Talos Energy disclosed the discovery of commercial quantities of oil and natural gas at the Lime Rock and Venice prospects, reporting 78 feet and 72 feet of net hydrocarbon pay within the primary targets of these discoveries. The two wells have now been brought on stream through a shared riser system at the Ram Powell platform, which was considered to be the deepest-producing TLP in the Gulf of Mexico at the time of first oil.

Recently, Talos Energy made another commercial oil and natural gas discovery in the Gulf of Mexico. This will be tied back to the Prince platform and the first oil is expected in the next 18 to 24 months.

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