The Joint Venture partnership between Talos Energy, LLC along with London based Premier Oil, PLC, has sunk a new offshore oil well in the waters of Mexico. Along with Mexico based Sierra Oil & Gas, drilling began May of 2017 and it is the first offshore exploration performed by an entity other than Petroleos Mexicanos, a state run company that has had a monopoly on drilling.
The work is being completed in the Sureste Basin and it is estimated to hold between 100 and 500 million barrels of crude oil. The cost of the drill was estimated at $16 million. The companies involved won the right to drill after bidding on the work when Mexico decided to open the oil industry to private investment. The work is being done as part of the energy reform process for Mexico and the work was closely monitored by the industry.
According to an analyst at Edison Investment Research, Ltd. A London based company that the basin structure suggests the project has a very high chance of success based on the geological formation of the area.
Talos Energy holds a 35 percent stake in the project while Premier holds 25 percent and Sierra holds 40 percent. Talos Energy was started with $600 million from backers of other energy projects. Tim Duncan and several partners were part of a private equity backed gas and oil company. The company has been on the upswing from the very beginning with the employee team increasing from 15 to 120 when Talos struck a deal with Apollo Management and Riverstone Holdings, both private equity funding companies.
Workplace Dynamics named Talos Energy the best small workplace among a pool of small businesses. Employees are rewarded with company equity for all from the receptionists to the geoscientists, administrative and support teams within the company. With everyone working from the same vantage point, everyone is enjoying the rewards for their hard work. The company is growing and expanding their markets by acquiring other energy companies. The value of the company is defined in the team work that enhances productivity, safety measures that are always being improved and bringing everyone’s ideas to the table.