Wedoany.com Report-Aug. 26, Talos Energy Inc. reported a successful oil discovery at the Daenerys exploration prospect in the U.S. Gulf of Mexico, specifically in Walker Ridge blocks 106, 107, 150, and 151. The discovery well, drilled to a vertical depth of 33,228 feet using the West Vela deepwater drillship, encountered oil in multiple high-quality, sub-salt Miocene sands. A comprehensive wireline program collected core, fluid, and log data to assess the reservoir’s potential.
Talos Energy Inc. said it encountered oil at the Daenerys exploration prospect.
The drilling operation was completed 12 days ahead of schedule and approximately $16 million under budget, demonstrating operational efficiency. Talos has temporarily suspended the discovery well to preserve its future utility and is planning an appraisal well to further evaluate the resource, with drilling expected to begin in the second quarter of 2026.
Talos President and CEO Paul Goodfellow stated: “We are encouraged by the results of our Daenerys discovery well, which confirms the presence of hydrocarbons and validates our geologic and geophysical models. We believe these results support Talos’ pre-drill resource assumptions. We are now working closely with our partners to design an appraisal program that will further delineate this exciting discovery. We anticipate spudding the appraisal well in the second quarter of 2026.”
As the operator, Talos holds a 27% working interest in the project. Partners include Shell Offshore Inc. with 22.5%, Red Willow with 22.5%, Houston Energy, L.P. with 10%, Cathexis with 9%, and HEQ II Daenerys LLC with 9%. The Daenerys prospect is a significant sub-salt project with an estimated pre-drill gross resource potential of 100 to 300 million barrels of oil equivalent.
In June, Talos outlined a strategy to position itself as a leading offshore exploration and production company. The company aims to achieve $100 million in increased annualized cash flow by 2026 through improved capital efficiency, margin enhancements, and organizational improvements. Talos plans to focus on high-margin organic projects and selective acquisitions in deepwater basins to boost production and profitability.
This discovery follows Talos’ earlier success at the Katmai West #2 well in the Ewing Bank area of the U.S. Gulf of Mexico. Drilled to a depth of 27,000 feet, the Katmai well encountered over 400 feet of hydrocarbon pay, doubling the field’s estimated recoverable resources to approximately 50 million barrels of oil equivalent, with a total potential of 100 million barrels.
