Houston-based independent Talos Energy brought two oil and gas discoveries in the US Gulf of Mexico (GOM) on stream earlier than expected.
The company announced on 3 January that its Lime Rock and Venice fields, developed as subsea tiebacks to Talos’ own Ram Powell production platform in the GOM, were brought safely online in late December 2023. The fields have achieved an initial combined gross production rate of more than 18,500 BOED, averaging about 45% oil and 55% liquids.
When the wells were discovered, the company said it expected the duo’s production to come online in the first quarter of 2024.
"The safe startup of Lime Rock and Venice in less than 12 months is an extraordinary achievement by our operations team, which included new subsea installation and facility upgrade work. These prospects exemplify our strategy of utilizing purchased infrastructure and seismic imaging technology expertise to identify new and valuable investment opportunities to grow reserves and production to meet growing energy demand,” said Talos President and Chief Executive Officer Timothy S. Duncan.
These two discoveries’ estimated combined gross ultimate recoverable resources are about 20 to 30 million BOE.
The Lime Rock prospect was acquired in Lease Sale 256 in November 2020 and is about 7 miles from the Ram Powell facility. The Venice prospect was identified within the existing Ram Powell unit acreage about 3 miles from the Ram Powell facility.
“With these production additions, the Ram Powell facility is expected to achieve the highest combined sustainable production rate since approximately 15 years ago. Demonstrating our ability to leverage existing infrastructure successfully also provides a blueprint for future optimization, development, and exploration opportunities around our existing and potential new assets,” said Duncan.
Talos initially held a 100% working interest in both prospects before successful farm-downs to achieve its targeted 60% working interest. In addition to Talos's net production, the company said it will collect volume-based production handling fees from nonoperated partners in both discoveries.
