New oil & gas discovery pops up in Gulf of Mexico while ongoing drilling ops hint another may come soon

Houston-based energy player Talos Energy has confirmed a discovery of commercial quantities of oil and natural gas at a block in the U.S. Gulf of Mexico where the firm holds a non-operated stake. Since the company is also participating in drilling activities at another prospect in the region, this opens the possibility for more hydrocarbons to be found.

The drilling activities at the Ewing Bank 953 well (EW 953 well) led to the discovery of commercial quantities of oil and natural gas, encountering approximately 127 feet of net pay in the target sand at approximately 19,000 feet true vertical depth (TVD).

The preliminary data is interpreted to indicate an estimated gross recoverable resource potential of around 15 – 25 million barrels of oil equivalent (MMBoe) from a single subsea well with an initial gross production rate of 8 – 10,000 barrels of oil equivalent per day (MBoe/d). The first production is expected in mid-2026.

Based on the current plans, the well will be tied back to the South Timbalier 311 Megalodon host platform, which Talos partially owns. While Walter Oil & Gas is the operator of the EW 953 well with 56.7% interest, Talos has 33.3% working interest and Gordy Oil Company holds the remaining 10% stake.

Joe Mills, Talos Interim President and Chief Executive Officer, commented: “We are excited about the results of the Ewing Bank 953 well. The well logged better than expected rock properties, which we believe should lead to a robust initial flow rate.

“This discovery follows a series of successful single-well subsea exploitation wells tied back to Talos-owned existing infrastructure, like Venice and Lime Rock, Sunspear, and Claiborne sidetrack.”

Meanwhile, Talos agreed to participate in the Sebastian prospect, where drilling activities kicked off in late August 2024 within the Mississippi Canyon Block 387 of the U.S. Gulf of Mexico, targeting the regionally prolific Upper Miocene K-1 reservoir at approximately 12,000 feet TVD.

According to the U.S. player, this amplitude-supported prospect contains an estimated gross resource potential of 9 – 16 MMBoe with a potential initial production rate of 6 – 10 MBoe/d. The results are expected in late fourth quarter of 2024.

Talos claims that the Sebastian prospect will be tied back to the Delta House facility, where it has a partial interest, with Murphy Oil Corporation as the operator.

Mills noted: “We were able to include the Sebastian prospect in our second-half 2024 drilling portfolio without requiring updates to our capital expenditures guidance for the year.

“These drill-ready projects exemplify our focus on tactical, lower-risk opportunities that can be brought online relatively quickly and supplement our larger, longer lead drilling projects.”

A few months ago, Talos Energy completed the acquisition of QuarterNorth Energy, bringing ownership in several offshore fields to its fold.