Talos Energy gets nod for additional exploration offshore Mexico

Talos Energy Inc. received a 2-year contract extension and regulatory approvals for additional exploration activities on Block 7 offshore Mexico in the Sureste basin. Talos operates Block 7. Its partners include Sierra Oil & Gas, a Wintershall DEA company, and Premier Oil PLC.

The consortium identified multiple potential oil exploration targets on Block 7, including the Xlapak and Pok-A-Tok prospects.

The National Hydrocarbons Commission of Mexico approved a modified Block 7 exploration plan in which the consortium retains the acreage coverall all its exploration targets. Typically, the Block 7 production-sharing contract requires the consortium to relinquish half the acreage but not in this case.

In July the consortium announced the Zama-1 discovery on Block 7. The Zama-1 well was the first offshore exploration well drilled by the private sector in Mexico’s history. Premier holds a 25% interest.