Oil & Gas News

Talos Energy High Bidder on Two Federal Lease Sale Blocks

Talos Energy Inc. (NYSE: TALO) is the apparent high bidder on two deepwater blocks in the recent Outer Continental Shelf ("OCS") Federal Lease Sale 256, held on November 18, 2020. Talos placed a sole bid on Viosca Knoll 1000 as well as a joint bid with an affiliate of bp on Green Canyon 866. When approved, the blocks will provide an additional 11,520 gross acres for future exploration acquired at an average cost of less than $300 per gross acre.

President and Chief Executive Officer Timothy S. Duncan commented: "We are happy with the results of our bidding efforts in the most recent lease sale, and look forward to adding the additional acreage and exploration prospects to our portfolio. We continue to believe that our basin offers attractive investment opportunities across a uniquely wide range of resource size, risk and cycle time characteristics. The Viosca Knoll 1000 block contains a technically mature prospect located approximately five miles from the Talos-operated Ram Powell facility, greatly enhancing potential project economics due to the quick cycle time, short tie-back distance and 100% Talos infrastructure ownership. The Green Canyon 866 lease expands our collaboration with bp around the Puma West prospect area and offers low-cost option value in the event of a commercial discovery at the Puma West prospect. As one of the U.S. Gulf of Mexico's largest independent operators, we're proud of the role we play in exploring for and developing our rich domestic energy resources to provide secure, affordable energy supply while also being an industry leader in safety and environmental performance."

Building on the success of OCS Federal Lease Sale 256, the Bureau of Ocean Energy Management announced on November 17, 2020 that OCS Federal Lease Sale 257 will be held on March 17, 2021 and will offer over 78 million acres across 14,594 unleased blocks, which comprises all of the available unleased areas in federal waters in the U.S. Gulf of Mexico. Lease Sale 257 will be the eighth offshore sale under the 2017-2022 OCS Oil and Gas Leasing Program, the program required by federal law under the Outer Continental Shelf Lands Act.

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