Talos Energy expects ‘immaterial’ Q4 impacts from GoM oil leak

Dec. 7, 2023
Talos Energy reaffirmed its fourth-quarter 2023 operational guidance as it expects the impact related to the Main Pass Oil Gathering pipeline shut-in to be immaterial.

Talos Energy Inc., Houston, has reaffirmed its fourth-quarter 2023 operational guidance as it expects the impact related to the Main Pass Oil Gathering pipeline shut-in to be immaterial.

Talos is among seven oil producers whose production has been shut-in since mid-November 2023 in the US Gulf of Mexico following the pipeline’s closure after reports of an oil leak near Plaquemines Parish, southeast of New Orleans, the company said in a release Dec. 7.  

The cause and source of the incident remain under investigation, the United States Coast Guard said in an update Dec. 5. To date, the entire length of the main pipeline has been assessed, along with 22.16 miles of surrounding pipelines, with no damage or indications of a leak identified.

For fourth-quarter 2023, Talos expects average daily production of 66,500-68,500 boe/d.

Ahead of yearend 2023, Talos anticipates first production from Gulf of Mexico discoveries Venice and Lime Rock. Previously anticipated online in first-quarter 2024, the wells will be tied-back to the Talos-owned and operated Ram Powell platform (OGJ Online, Jan. 4, 2023). Talos owns a 60% working interest in both wells.

Expected combined gross production rates are 15,000-20,000 bo/d, in line with pre-drill estimates. Combined gross recoverable resources are 20-30 MMboe, averaging 40% oil and 60% liquids.

Elsewhere in the Gulf of Mexico, Talos expects a second-half 2024 spud date for the subsalt Daenerys prospect, which will evaluate the Miocene section at a target depth of 26,000-31,000 ft TVDSS, the company noted in a Dec. 5 investor presentation.

Talos is operator of the project through an early 2023 Walker Ridge area farm-in combining 23,000 gross acres with partners Red Willow Offshore LLC, Houston Energy, and Cathexis. Resources are estimated as 100–300 MMboe (gross).