Oil and natural gas is a commodity that most people use in their daily lives without thinking twice about it. People use it for everything from heat to power run cars, and everything in between. Mexico has oil resources offshore that have been untouched by foreign companies for a long time until now. For the first time in eighty years they are allowing a private company set an offshore oil well in their waters.
It will be a joint venture for Houston’s Talos Energy LLC, Mexico’s Sierra Oil & Gas, and London-based Premier Oil Plc to start drilling on May 21st. It will cost premier 16 million dollars and will take 90 days to complete. They expect to get 100 to 500 million gallons of crude oil. Mexico voted to open to foreign oil companies, and the three companies won rights to the prospect in 2015. This is a part of the country’s energy reform process. There is a high chance of success said Elaine Reynolds, an analyst at London-based Edison Investment Research Ltd. Talos owns 35 percent of the well and is the operator of the well. Premier Oil Plc owns 25 percent and Sierra Oil & Gas holds 40 percent. An an analyst at Canaccord Genuity Ltd said this should be the most interesting wells to be drilled. Hopefully for the three companies this works out and they strike success.
Talos Energy LLC is a privately Houston-based gas and oil company founded in 2012. They focus on offshore exploration, development, and production of oil and natural gases in the Gulf of Mexico and Gulf Coast.
Timothy S. Duncan is the President, Chief Executive Officer, and Director of Talos Energy. The company is backed with investment funds affiliated with Apollo Global Management LLC, Talos management, and Riverstone Holdings LLC.
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