The US oil and gas company started production from the Lime Rock and Venice discoveries, achieving an initial combined gross production rate of more than 18,500 barrels of oil equivalent per day (boepd), averaging about 45% oil and 55% liquids
US-based oil and gas company Talos Energy has started production from the Lime Rock and Venice discoveries in the US Gulf of Mexico, in which Talos owns a 60% working interest.
Talos starts production from two GoM discoveries. (Credit: Ben Wicks on Unsplash)
The two deepwater discoveries, located near the company’s fully owned and operated Ram Powell platform, were brought safely online in late December 2023.
The wells achieved an initial combined gross production rate of more than 18,500 barrels of oil equivalent per day (boepd), averaging about 45% oil and 55% liquids.
The two discoveries are estimated to hold combined gross ultimate recoverable resources of around 20 to 30 million barrels of oil equivalent (boe).
Talos said that in addition to net production, the company will collect volume-based production handling fees (PHA fees) from non-operated partners in both discoveries.
Talos president and CEO Timothy Duncan said: “The safe start-up of Lime Rock and Venice in less than 12 months is an extraordinary achievement by our operations team, which included new subsea installation and facility upgrade work.
“These prospects exemplify our strategy of utilising purchased infrastructure and seismic imaging technology expertise to identify new and valuable investment opportunities to grow reserves and production to meet growing energy demand.”
Talos purchased the Lime Rock prospect, which is located around seven miles (11km) from the Ram Powell facility, through Lease Sale 256 in November 2020.
The Venice prospect was identified within the existing Ram Powell unit acreage, around three miles (5km) from the Ram Powell facility.
Talos initially held a 100% working interest in both prospects, until the company successfully farm-down to retain its targeted 60% working interest.
Duncan added: “With these production additions, the Ram Powell facility is expected to achieve the highest combined sustainable production rate since approximately 15 years ago.
“Demonstrating our ability to successfully leverage existing infrastructure also provides a blueprint for future optimisation, development, and exploration opportunities around our existing and potential new assets.”