Talos Energy Not Impacted By Expanded Offshore Moratorium

Rhea-AI Summary

Talos Energy (NYSE: TALO) announced that its operations remain unaffected by the Presidential Order extending the moratorium on oil and gas development in the Eastern Gulf of Mexico and new restrictions on U.S. Atlantic coasts. The company confirms that all its assets are in the Central and Western Gulf of Mexico, allowing for ongoing operations and future developments. Approximately 80% of Talos's U.S. acreage is in federal waters. The Gulf of Mexico generates over $28 billion annually for the U.S. economy and supports over 340,000 jobs.

Positive

• Talos's assets are entirely in unaffected areas (Central and Western Gulf of Mexico).
• Approximately 80% of U.S. net acreage is in federal waters, ensuring operational stability.
• The Gulf of Mexico contributes over $28 billion to the U.S. economy annually.

Negative

• None.

HOUSTON, Sept. 9, 2020 /PRNewswire/ -- Talos Energy Inc. ("Talos," or the "Company") (NYSE: TALO) today issued a statement clarifying that the Company's business will not be impacted by the recently announced Presidential Order extending the current moratorium on oil and gas development in the Eastern Gulf of Mexico (offshore Florida) and imposing new restrictions on oil and gas development in U.S. waters off the Atlantic coasts of Florida, Georgia and South Carolina.

Talos reiterates that 100% of the Company's assets located in the federal waters of the U.S. are in the Central and Western Gulf of Mexico Planning Areas, which are unaffected by the Presidential Order. Therefore, these actions have no impact on the Company's current or planned future operations and do not change the Company's ability to continue to responsibly develop its existing properties, acquire new leases, or obtain new drilling permits. Approximately 80% of the Company's U.S. net acreage is located in federal waters and approximately 20% in state waters and coastal lands.

Oil and gas production from the U.S. Gulf of Mexico contributes over $28 billion to the U.S. economy annually and sustains over 340,000 jobs across all 50 states. Royalties from oil and gas production are the second largest contributor to the U.S. Treasury behind only the federal income tax.

ABOUT TALOS ENERGY

Talos Energy (NYSE: TALO) is a technically driven independent exploration and production company focused on safely and efficiently maximizing cash flows and long-term value through its operations, currently in the United States Gulf of Mexico and offshore Mexico. As one of the U.S. Gulf of Mexico's largest public independent producers, we leverage decades of geology, geophysics and offshore operations expertise towards the acquisition, exploration, exploitation and development of assets in key geological trends that are present in many offshore basins around the world. Our activities in offshore Mexico provide high impact exploration opportunities in an oil rich emerging basin. For more information, visit www.talosenergy.com.

INVESTOR RELATIONS CONTACT

Sergio Maiworm
+1.713.328.3008
investor@talosenergy.com 

CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS

This communication may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this communication, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this communication, the words "could," "believe," "anticipate," "intend," "estimate," "expect," "project," "forecast, "may," "objective," "plan" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.

We caution you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks include, but are not limited to, commodity price volatility, including the sharp decline in oil prices beginning in March 2020, the impact of the coronavirus disease 2019 ("COVID-19") and governmental measures related thereto on global demand for oil and natural gas and on the operations of our business, the ability or willingness of the Organization of Petroleum Exporting Countries ("OPEC") and non-OPEC countries, such as Saudi Arabia and Russia, to set and maintain oil production levels and the impact of any such actions, lack of transportation and storage capacity as a result of oversupply, government regulations and actions, including with respect to repairs to the Ram Powell facility, or other factors, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, the possibility that the anticipated benefits of recent acquisitions are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of such acquisitions, and other factors that may affect our future results and business, generally, including those discussed under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2019 and our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020, to be filed with the SEC subsequent to the issuance of this communication.

Should one or more of these risks occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, to reflect events or circumstances after the date of this communication.

Estimates for our future production volumes are based on assumptions of capital expenditure levels and the assumption that market demand and prices for oil and gas will continue at levels that allow for economic production of these products. The production, transportation, marketing and storage of oil and gas are subject to disruption due to transportation, processing and storage availability, mechanical failure, human error, hurricanes and numerous other factors. Our estimates are based on certain other assumptions, such as well performance, which may vary significantly from those assumed. Therefore, we can give no assurance that our future production volumes will be as estimated.

 

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SOURCE Talos Energy

FAQ

How is Talos Energy affected by the Presidential Order?

Talos Energy's operations are not impacted by the Presidential Order extending the moratorium on oil and gas development.

What percentage of Talos Energy's assets are in federal waters?

Approximately 80% of Talos Energy's U.S. net acreage is located in federal waters.

What is the significance of Gulf of Mexico oil production?

Oil and gas production from the Gulf of Mexico contributes over $28 billion annually to the U.S. economy.

What operations can Talos Energy continue despite the moratorium?

Talos can continue to develop existing properties, acquire new leases, and obtain new drilling permits.

What states are affected by the new offshore restrictions?

The new restrictions affect oil and gas development off the Atlantic coasts of Florida, Georgia, and South Carolina.