Talos Energy Inc. is the apparent high bidder on two deepwater blocks from the recent Outer Continental Shelf (OCS) Federal Lease Sale 256, held on Nov. 18, 2020 (OGJ Online, Nov. 18, 2020). Talos placed a sole bid on Viosca Knoll 1000 and a joint bid with a BP affiliate on Green Canyon 866. When approved, the blocks will provide an additional 11,520 gross acres for future exploration acquired at an average cost of less than $300/gross acre, the company said.
Viosca Knoll contains a technically mature prospect 5 miles from the Talos-operated Ram Powell platform, “greatly enhancing potential project economics due to the quick cycle time, short tie-back distance and 100% Talos infrastructure ownership,” said Timothy Duncan, Talos president and chief executive officer. “The Green Canyon 866 lease expands our collaboration with bp around the Puma West prospect area and offers low-cost option value in the event of a commercial discovery at the Puma West prospect,” he continued.
The Bureau of Ocean Energy Management said Nov. 17 that OCS Federal Lease Sale 257 will be held Mar. 17, 2021, and will offer over 78 million acres across 14,594 unleased blocks, which comprises all of the available unleased areas in federal waters in the US Gulf of Mexico.