On May 21st 2017, a joint venture between Premier Oil, Talos Energy, and Sierra Oil & Gas became the first private company to launch an off-shore oil well exploration in Mexican waters since 1938. Previously, no others has succeeded in this task besides the state run monopoly of Petroleos Mexicanos when the country nationalized its oil industry. According to Premier, the drilling is expected to be completed in 90 days, at a cost of $16 million. In 2015, the three companies won the rights to the prospect in the first round of bidding, when Mexico voted to open its aging oil industry to private investments. The drilling will be watched very closely by the industry, as it will be a large part of Mexico’s 2013 energy reform process.
According to London-based Edison Investment Research, the structure of the basin suggests a “high geological chance of success” for the project. The operator of the well, will be Talos Energy LLC, with a 35% stake in the venture. Talos Energy is helping to provide Mexico a stable foundation for foreign investment success by creating the regulatory framework as seen in other international and more mature basins. Talos cites similarities in the rock properties and resource potential in the area as being on par with other projects they’ve worked on.
Talos Energy LLC is a Houston based, privately held upstream oil and gas company. Their focus is on exploration, and exploitation of oil an gas properties, focusing on the Gulf Coast and Gulf of Mexico. The commercial manager for Mexico at Talos Energy, Ash Shepherd, credits CEO Tim Duncan with their overwhelming success, stating that Tim has introduced his team to the prospects of working with private equity companies and creative financing solutions. Tim Duncan worked his way up from reservoir engineer manager at Gryphon exploration and has said that through the years his employers were interested in what he’s had to say. This motivated him to succeed and emulate that within his own company. And the strategy is working- Talos Energy was named the best workplace among local small businesses this year by Workplace Dynamics.