Talos Energy Inc. today provided an additional update on the Zama appraisal program in Block 7, located in the offshore portion of Mexico's prolific Sureste Basin. Talos is the operator of Block 7 in a consortium (the "Consortium") with its partners Sierra Oil & Gas, a company of DEA Deutsche Erdoel AG, and Premier Oil Plc.
The Zama-2 ST1 appraisal well is the second of three appraisal penetrations drilled by the Consortium to better define the resource potential of the Zama discovery. Building upon the success of the first appraisal penetration (Zama-2), the goals of the Zama-2 ST1 well were to test the northern limits of the reservoir, acquire a whole core to collect detailed rock properties, and perform a well test in several perforated intervals. The Zama-2 ST1 well was drilled 589 feet (180 meters) updip of the Zama-2 well and approximately 1.4 miles (2.1 kilometers) north of Zama-1 exploration well, and generated the following results:
Talos President and Chief Executive Officer Timothy S. Duncan commented, "The Zama-2 ST1 operation was another success for the Consortium. With each stage of the appraisal program, our experience and understanding has continued to strengthen in the region, and this is evident in our operational performance. The coring operation allowed us to gather important rock samples, which indicate excellent rock properties with similarities to world-class reservoirs in the United States Gulf of Mexico. The production rate of 7,900 Boe/d from two zones in a very simple rate-restricted test over only a portion of the total pay column confirmed our expectations that the Zama wells will provide exceptional productivity. The tests also confirmed our geologic model of well-connected reservoirs, which should allow for a high ultimate oil recovery. Given the water depth of approximately 550 feet (168 meters), we believe that a combination of fixed platforms, dry trees and short-cycle development wells will maximize both capital efficiency and optionality with regard to how many total wells and completions per well will be necessary to maximize recovery. Also, given the deliverability of the perforated intervals demonstrated in the flow test, we believe a peak production rate between 150,000 – 175,000 Boe/d is achievable."
In the next stage of the appraisal program, the Zama-3 appraisal well will be drilled to the south of the original Zama-1 exploration well and will assist in delineating the reservoir continuity and quality in the southern part of the field. The Zama-3 appraisal operation includes collecting an additional core to better understand the reservoir geology.
Duncan added, "We will now move to the southern end of the discovery with the Zama-3 appraisal well to continue to collect data before concluding appraisal operations. Concurrently, we are working with Petróleos Mexicanos ("Pemex") on unitization prior to submitting a development plan to the regulator. Our goal is to reach final investment decision ("FID") and first production as soon as possible. With the continued focus of the Talos operating team, our partners, and local workforce, Zama will be an impactful asset for the Company and the Mexican economy, and we are proud to play a key role in its development."
Source: Talos Energy Inc.
Date: Apr 16, 2019