For roughly 80 years, Mexico has excluded foreign companies from drilling off of its coast. However, in 2015, a deal was struck that allowed foreign investors to come in and bid for drilling rights. As a result, three companies won the rights to drill and have drilled in what is called in the Zama-1 well, in the Sureste Basin.
Drilling in the Zama-1 well was cut out to be a success because of the geology of where it lies. The operation began on May 21st, and was expected to take roughly 90 days to be finished. However, the drilling was finished on July 2nd, 2017, which means that the drilling took only 55 days. The cost of the drilling project was projected be $16 million. The well is under 546 feet, or 166 meters of water, and is located 37 miles, or 60 kilometers, from the Port of Dos Bocas. The well’s initial shallow target vertical depth is 3,383 meters, or 11,100 feet. There have been samples of hydrocarbon taken from the well. These samples show us that there is light oil with API gravities that are somewhere between 28 degrees and 30 degrees.
Talos Energy is one of the three companies that is involved in this drilling operation. Drilling in this part of the world is not new to them. In fact, ever since the year of 2012, when they founded, they have been operating in the Gulf of Mexico. Their headquarters is not too far away either; being in Houston, Texas.
Talos Energy owns about 35% of the operation off the shore of Mexico, and operates the well. Talos has founded and sold companies that were private equity backed. These transactions have resulted in significant gains for their investors. The names of these companies were Gryphon Exploration and Phoenix Exploration.