Houston-based Talos Energy has changed the timeline for the start of production from two oil and natural gas deepwater discoveries in the U.S. Gulf of Mexico, which are being developed as subsea tie-backs to the U.S. player’s tension-leg platform (TLP).
Talos Energy disclosed in 4Q 2022 the discovery of commercial quantities of oil and natural gas at its 60% owned Lime Rock and Venice prospects, which are located near its 100% owned and operated Ram Powell offshore production platform, where future production from both wells will flow via subsea tie-backs.
At the time, 78 feet and 72 feet of net hydrocarbon pay were reported within the primary targets of these discoveries. The estimated combined gross recoverable resources are in line with pre-drill estimates of 20-30 million barrels of oil equivalent (boe), averaging around 40% oil and 60% liquids. The first production from both wells was expected by the first quarter of 2024.
The two wells, set to produce through a shared riser system at the Ram Powell facility, are now anticipated to come online ahead of schedule by year-end 2023, according to Talos. The expected combined gross production rates are in line with pre-drill estimates of approximately 15-20,000 barrels of oil equivalent per day.
While the Lime Rock prospect – located approximately 9 miles from the Ram Powell facility – was acquired in Lease Sale 256 in November of 2020, the Venice prospect was identified within the existing Ram Powell unit acreage approximately 4 miles from the Ram Powell facility.
At the time of first oil, the platform was the deepest producing TLP in the Gulf of Mexico. Talos explains that the Ram Powell asset produced approximately 250 MMBoe before the U.S. player acquired it in 2018 . Afterward, the company initiated optimization projects that increased production rates, reduced costs, and started a third-party production handling agreement.
Recently, Talos Energy made another commercial oil and natural gas discovery in the Gulf of Mexico. This will be tied back to the Prince platform and the first oil is expected in the next 18 to 24 months.