Work on the Zama project offshore Mexico’s Sureste basin continues, Talos Energy Inc. said after results of an independent contingent resource report came in above the company’s previously guided resource range (OGJ Online, June 27, 2019). Talos operates Block 7 with 35% interest in a consortium with Sierra Oil & Gas, a Wintershall DEA company, and Premier Oil plc.
Netherland, Sewell & Associates Inc. (NSAI) reported best estimate 2C gross recoverable resources of 670 MMboe. NSAI estimates 60% of the total resources of Zama are on Block 7 in the 2C case. As previously disclosed, the Zama reservoir extends into the adjacent block to the east, owned by Petróleos Mexicanos (Pemex) and, therefore, is subject to unitization between the consortium and Pemex. NSAI's high estimate of the 3C gross recoverable resource estimate is 1,010 MMboe, exceeding the high end of the company's guidance range. The report indicated high quality oil accounts for 94% of total resource estimates in both 2C and 3C cases and API gravities average 28 degrees, Talos said.
NSAI used a full geological data set collected from four successful reservoir penetrations, including a down-dip test to confirm an oil-water contact. In addition, the data set included over 1,400 ft of whole core samples, an extended flow test, 185 pressure samples, 60 physical oil samples, and 28 well logs.
Talos president and chief executive officer Timothy S. Duncan said the company “will continue to advance the project engineering and design work while also finalizing unitization procedures,” noting the activities are expected to be completed in the coming months.
On Dec. 9, 2019, the consortium presented a formal notice to Mexico's Ministry of Energy (SENER) providing technical evidence of the shared Zama reservoir and has worked to plan the expected development of the shared reservoir. Pre-FEED has been completed, and early FEED work has begun to develop the detailed engineering plans for Zama. Development will include two fixed production facilities capable of handling a combined 150,000 b/d of oil, plus associated gas.
“Talos and its partners in the Consortium have made great progress in meeting the milestones required to keep our world class Zama discovery on pace for a 2020 FID if we can conclude unitization discussions soon. Doing so will allow us to establish first oil in 2023,” Duncan said.