Talos Energy discovers hydrocarbons in deepwater Gulf of Mexico Daenerys well

Talos Energy Inc. discovered hydrocarbons in the Daenerys exploration well in the deepwater US Gulf of Mexico and is planning an appraisal well to further define the discovered resource.

The discovery well has been temporarily suspended to preserve its future utility, the company said in a release Aug. 19.

As part of its second-quarter 2025 earnings report Aug. 6, Talos said the then-prospect, which lies in Walker Ridge blocks 106, 107, 150, and 151, held pre-drill estimated gross resource potential of 100–300 MMboe. 

The well, drilled by the West Vela drillship to 33,228 ft TVD, encountered oil pay in multiple high-quality sub-salt Miocene sands and validated Talos’s geologic and geophysical models and pre-drill resource assumptions, the company said Aug. 19. A comprehensive wireline program was conducted, acquiring core, fluid, and log data to evaluate the reservoir.

Talos is operator of Daenerys (27%) with partners Shell Offshore Inc. (22.5%), Red Willow (22.5%), Houston Energy LP (10%), Cathexis (9%), and HEQ II Daenerys LLC (9%).

Production, projects update

As part of its second-quarter 2025 report, Talos provided updates on current production and projects. 

The West Vela rig is scheduled to return to the Sunspear well, which is tied back to the Talos-operated Prince platform.

In July, production from the well was temporarily shut in due to an early failure of the surface-controlled subsurface safety valve (SCSSV). Talos expects Sunspear to return to production in late October 2025.

In second-quarter 2025, Talos started production from the Katmai West #2 well. Total gross production from Katmai East and West fields is about 35,000 boe/d (71% oil) which flows to the Talos-operated Tarantula platform. Talos expects production from the fields to remain at the current rate for several years as the platform is at maximum capacity.

The greater Katmai area is estimated to contain total resource potential of up to 200 MMboe. Talos is operator (50%) with Ridgewood Energy Corp. holding the remaining 50%.

In March 2025 Talos increased its interest in the Monument discovery to 29.76% working interest from 21.4%. Monument is a large Wilcox oil discovery in Walker Ridge blocks 271, 272, 315, and 316. Talos expects to develop it as a subsea tie-back to the Shenandoah production facility in Walker Ridge.

First production of 20,000–30,000 boe/d gross is expected by late 2026. Talos said there is an additional drilling location adjacent to Monument with an estimated 25–35 MMboe that could extend the resource. Beacon Offshore Energy LLC is operator (41.67%) and Navitas Petroleum LP holds the remaining 28.57%.

Overall, in second-quarter 2025, Talos produced 93,300 boe/d (69% oil, 77% liquids). In the year's third quarter, the operator expects average production of 86-90 boe/d, with 69% oil volumes.