Zama Field Unitization Process Continues, Led by Mexico's Ministry of Energy
Talos Energy (NYSE: TALO) announced on March 26, 2021, that the unitization process for the Zama field is advancing, as mandated by Mexican regulations. The Ministry of Energy (SENER) must now propose terms for a Unitization and Unit Operating Agreement (UUOA). Notably, a UUOA was not proposed by Talos and its consortium partners by the March 25 deadline. CEO Timothy S. Duncan expressed optimism regarding cooperation with SENER and Pemex as they seek a resolution. The Zama field, discovered in 2017, extends across multiple blocks in the Bay of Campeche, Mexico.
- Continued progress in the Zama field unitization process, indicating potential for increased operational efficiency.
- CEO expresses optimism about cooperation with SENER and Pemex, suggesting a constructive engagement.
- Failure to propose a Unitization and Unit Operating Agreement (UUOA) by the March 25 deadline raises concerns about delays.
- Pending finalization of terms by SENER introduces uncertainty in the development timeline of the Zama field.
HOUSTON, March 26, 2021 /PRNewswire/ -- Talos Energy Inc. ("Talos," or the "Company") (NYSE: TALO) today announced that the unitization process of the Zama field will enter its next phase, as established in Mexican regulation. The Mexican Ministry of Energy ("SENER") is now required to propose finalized terms of a Unitization and Unit Operating Agreement ("UUOA") based on international best practices and considering inputs from the parties.
Petróleos Mexicanos ("Pemex") and the Block 7 consortium, comprised of Talos and partners Premier Oil and Wintershall Dea, did not propose a UUOA to SENER within the initial timeframe established by the unitization guidelines, which ended March 25, 2021.
President and Chief Executive Officer Timothy S. Duncan commented: "Since the presentation of the original key terms for the UUOA, significant progress in reaching a common understanding has been largely achieved. We appreciate the increased momentum and commitment from Pemex towards achieving a joint resolution. As we transition into this new phase in the process, we look forward to continuing to engage constructively with both SENER and Pemex and we are confident we can achieve a positive outcome for all parties."
Discovered in 2017 by the Talos-led consortium, Zama is a shared reservoir that extends from Block 7 to neighboring Pemex AE-0152-Uchukil Asignación in the Cuencas del Sureste, in the Bay of Campeche in Mexico.
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
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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.
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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.
CAUTIONARY NOTE TO INVESTORS
The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. In this communication, the Company uses certain broader terms such as "contingent resources" and "2C resources" that the SEC's guidelines strictly prohibit the Company from including in filings with the SEC. These types of estimates do not represent, and are not intended to represent, any category of reserves based on SEC definitions, are by their nature more speculative than estimates of proved, probable and possible reserves and do not constitute "reserves" within the meaning of the SEC's rules. These estimates are subject to greater uncertainties, and accordingly, are subject to a substantially greater risk of actually being realized. Investors are urged to consider closely the disclosures and risk factors in the reports the Company files with the SEC.
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