Houston-based Gulf of Mexico producer Talos Energy Inc. (ticker: TALO) outlined the company’s strategy today in a new update.
The company projects 2018 pro forma production sales volumes of 18 – 19.5 MMBOE, or an average daily production 49 – 53 MBOEPD. Capital expenditures are expected to be $430 – $450 million, funded by cash on hand and cash flows from operations.
Production
Talos recently successfully drilled its Mt. Providence well in January. The company expects to complete and place this well online sometime in September 2018, and Talos estimates a gross IP rate of 2,000-4,000 BOEPD.
The Phoenix complex currently produces approximately 35 MBOEPD (total gross), of which approximately 25 MBOEPD is produced from its two Tornado wells, Talos said. The Tornado #3 well is expected to be spud in the fourth quarter later this year, with first oil expected in Q2 2019. Gross IP should be in the 10 – 15 MBOEPD range.
Additionally, the company plans to drill one to three exploration wells in Mexico, participate in two additional non‐operated deepwater exploration wells in the US Gulf of Mexico and drill five to seven wells in the U.S. Gulf of Mexico.
Talos completed its combination with Stone Energy Corporation earlier this month.
Talos Energy will present at the EnerCom conference in Denver
Talos Energy will be presenting at the 23rd annual edition of The Oil & Gas Conference®. The conference will take place August 19-23, 2018, at the Westin Denver Downtown. Investment and oil and gas professionals may register for the conference on the website.
