(Talos, 26.Jul.2021) — Talos Energy Inc. (NYSE: TALO) announced preliminary production estimates for the second quarter of 2021, successful first production from the company’s Tornado Attic well and successful drilling of the company’s Crown and Anchor well.
Talos estimates that average daily production for the second quarter of 2021 was approximately 66 thousand barrels of oil equivalent per day (“MBoe/d”) net, ahead of company expectations, and was approximately 69% oil and 76% liquids. Estimated realized prices for the quarter, exclusive of hedges, were $64.28/barrel of oil, $22.28/barrel of NGLs and $3.05/mcf of natural gas.
Following successful drilling of the Tornado Attic well, announced in June 2021, Talos executed completion operations and achieved first production in mid-July 2021. The well is currently producing above the previously estimated 8-10 MBoe/d range. The company also increased injection rates in the structurally downdip Tornado injector well and is now injecting at a rate of over 30,000 barrels of water per day into the producing B-6 formation. The project is the first intra-well water flood of its kind in a deepwater subsea environment and is intended to increase overall production and recovery efficiency through the existing subsea producing wells. Talos holds a 65% working interest (operator) along with Kosmos Energy.
The Crown and Anchor sidetrack well at Viosca Knoll block 960 was drilled to a true vertical depth (“TVD”) of approximately 13,000 feet and encountered approximately 50 feet of net TVD oil pay in the M62 Middle Miocene target horizon. The project has moved to the completion phase and will produce through existing subsea infrastructure to the Marlin tension leg platform, requiring nominal additional tie-back costs, with first production targeted by late third quarter of 2021. Talos holds a 34% working interest in the project along with Beacon Offshore Energy (operator) and Ridgewood Crown & Anchor LLC.
Talos President and Chief Executive Officer Timothy S. Duncan commented: “Our operations team provided exceptional execution in what was the most active portion of our capital program for the year and I’m pleased that we’ve delivered strong sequential production over the past two quarters, which does not include the impact of these two latest wells. Our high-quality asset base is delivering solid results, and in combination with commodity price support and continued balance sheet improvement, we’re excited to move into the second half of the year focused on numerous strategic initiatives. We look forward to providing a broader update in our upcoming earnings release.”
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