At a time when the financial crisis loomed large in the oil and gas industry, Tim Duncan along with his partners decided as many equity firms to downsize. His strategy was to redeploy assets into specific pools that proved to be lucrative long term investments. Duncan founded Talos Energy in 2011 to take advantage of the Gulf’s oil production capabilities.
Duncan understood he needed to make an impact and create motivation for moving forward. In other words he realized that making the most of his acquisitions would require buy-in from his employees. It was new territory because in the past it just wasn’t done. Investors however also needed that solid backing. It took awhile to put all the pieces together and marry the parts of the processes smoothly.
Talos Energy’s main focus is on the oil and gas industry. It is the regulatory processes that oil and gas companies go through that are of interest to many investors. Off-shore exploration is the passion that drives the company forward. The Gulf of Mexico’s oil wells produce over 16,000 barrels a day.
Off-shore exploration is what led Talos Energy to propose a new venture with Premier Oil Plc out of London and Sierra Oil & Gas out of Mexico. This new venture will help Mexico develop their oil and gas reserves. It will also provide a new source of revenue and equity for the three companies.
The discovery of the Zama-1 well with its estimated 500 million barrels of oil has created a stir in the industry. The wells drilled in the Sureste Basin have proven quite lucrative to the investors. The employees of Talos Energy, some of the best and brightest engineers and scientists, are very excited about this discovery. This discovery in the words of the CEO of Talos creates a bright future for offshore drilling in Mexico for years to come.
This new venture with two production contracts set with Mexico’s upstream regulator has already proven itself. Future plans are in the works to develop these first privately owned oil well exploration in 80 years. This includes defining the extent of the resource.
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