Seadrill drillship strikes oil & gas in US Gulf of Mexico enabling Talos to eye production start-up next quarter

Houston-based energy player Talos Energy has made a new oil and natural gas discovery in the U.S. Gulf of Mexico, thanks to its ongoing drilling activities with a drillship owned by Seadrill, an offshore drilling contractor.

The U.S. player’s drilling results show that the Katmai West #2 well in the Ewing Bank area of the U.S. Gulf of Mexico encountered commercial quantities of oil and natural gas. Talos underlined that the well was drilled significantly under budget and ahead of schedule to a true vertical depth of approximately 27,000 feet (8.23 kilometers).

After Sadrill’s Vest Vela drillship encountered the primary target sand full-to-base with over 400 feet (0.12 kilometers) of gross hydrocarbon pay and excellent rock properties in line with pre-drill expectations, the company underlines that the expected deliverability from the well is in line with pre-drill estimates of approximately 15–20,000 barrels of oil equivalent per day MBoe/d gross. The first production is expected in the late second quarter of 2025.

Furthermore, Talos Energy claims that the strong performance from the Katmai West #1 well, and the appraisal of the Katmai West #2 well, have nearly doubled the proved EUR estimated ultimate recovery of the Katmai West field to approximately 50 million barrels of oil equivalent (MMBoe) gross. This is said to further affirm the company’s expected total resource potential of approximately 100 MMBoe gross.

The Vela drillship began drilling the Katmai West #2 well in late October 2024. Talos plans to case and suspend the well by late January 2025, while the works on finalizing completion plans are to be executed in the second quarter of 2025. The production is expected to start later in the same quarter.

The well will be connected to the existing subsea infrastructure that flows to the Tarantula facility, which has been expanded to increase capacity to 35 MBoe/d. The well will be connected to the existing subsea infrastructure that flows to the Tarantula facility, which has been expanded to increase capacity to 35 MBoe/d.

Talos anticipates the Katmai wells will be rate-constrained under the upgraded capacity, allowing for extended flat-to-low decline production from the facility. The U.S. player, as the operator of the discovery, holds a 50% working interest, with entities managed by Ridgewood Energy Corporation holding the other 50% in the Katmai West field. Talos is the 100% owner and operator of the Tarantula facility.

John Spath, Talos’s Interim Co-President, Executive Vice President, and Head of Operations, commented: “We are proud of our team for achieving these successful drilling results. Delivering this high-impact deepwater well, approximately 35% under budget and more than a month ahead of schedule, demonstrates our ability to efficiently execute complex projects while maintaining top safety and environmental standards.

“We remain optimistic about the greater Katmai area, as these results align with our pre-drill expectations about its gross resource potential. We look forward to having this well on production and believe it positions us for strong value creation as we move forward into 2025.”

In September 2024, Talos disclosed the drilling activities at its non-operated Ewing Bank 953 well (EW 953 well), which led to the discovery of commercial quantities of oil and natural gas, encountering approximately 127 feet (38.71 meters) of net pay in the target sand at approximately 19,000 feet (5.79 kilometers) true vertical depth (TVD).