Green Canyon 21
Otto Energy has made a binding offer to farm-in to the Green Canyon 21 lease and will earn a 16.67% working interest by funding 22.22% of the costs to drill the initial “Bulleit” appraisal well. Definitive agreements to give effect to the farm-in, including commercial arrangements for oil and gas to be produced through Talos’s Green Canyon 18A platform, are currently being finalized with Talos. All subsequent costs of completion and development, including any further wells, shall be at Otto’s working interest of 16.67%.
Bulleit is an amplitude-supported Pliocene prospect with similar seismic attributes to the analogous sand section in Talos’s Green Canyon 18 field, which has produced approximately 39 MMBoe to date. The Bulleit prospect sits in approximately 1,200 feet of water and is 10 miles (16 kilometers) from the GC18A platform.
The DTR-10 oil sand, which is the primary target of the Bulleit well, was first discovered in 1984. Three wells, all with logged oil pay within the DTR-10 Sand Package, were drilled between 1984 and 1987. A sidetrack of the first well also found oil pay in both DTR-10 and deeper MP Sands. Drill stem tests from first and third sand packages in the DTR-10 sand were undertaken in 1985. Production rates expected from the MP sand when tied into a production platform are expected to deliver between 8-15,000 boepd. These high production rate oil wells are common for deepwater prospects whereas Bulleit has the advantage of being in significantly shallower water.
The discoveries were not developed at the time of discovery as there was no infrastructure available.
Talos has the GC 18A platform with spare capacity within tie back distance of GC-21. A subsea development is planned to tie the Bulleit well into the GC18A platform.
The MP sand is a second, deeper target to be tested in the initial well. The MP sand was also intersected in the 1980’s in a downdip position with 18’ of oil pay observed in cores acquired at the time. The Bulleit well will test this sand in an updip position.
About Talos Energy
Talos Energy (NYSE: TALO) is a technically driven independent exploration and production company with operations in the United States Gulf of Mexico and in the shallow waters off the coast of Mexico. Talos’s focus in the United States Gulf of Mexico is the exploration, acquisition, exploitation and development of shallow and deepwater assets near existing infrastructure. The shallow waters off the coast of Mexico provide Talos with high impact exploration opportunities in an emerging basin. The Company's website is located at www.talosenergy.com.
Bulleit Prospective Resources
Prospective resources (P50) are 14.5 MMboe (gross) and 1.9 MMboe (Net Revenue Interest). Talos has advised that gross prospective resources are expected to be between 10 to 30 MMboe on an unrisked basis.