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Talos Energy achieves first oil from Gulf of Mexico well

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Oilfield Technology,

Talos Energy has announced preliminary production estimates for 2Q21, successful first production from the Tornado Attic well and successful drilling of the Crown and Anchor well.

Talos estimates that average daily production for 2Q21 was approximately 66 000 boe/d net, ahead of company expectations, and was approximately 69% oil and 76% liquids. Estimated realised prices for the quarter, exclusive of hedges, were US$64.28/bbl of oil, US$22.28/bbl of NGLs and $3.05/million ft3 of natural gas.

Following successful drilling of the Tornado Attic well in the Gulf of Mexico, announced in June 2021, Talos executed completion operations and achieved first production in mid-July 2021. The well is currently producing above the previously estimated 8 - 10 000 boe/d range. The company also increased injection rates in the structurally downdip Tornado injector well and is now injecting at a rate of over 30 000 bpd of water into the producing B-6 formation. The project is the first intra-well water flood of its kind in a deepwater subsea environment and is intended to increase overall production and recovery efficiency through the existing subsea producing wells. Talos holds a 65% working interest (operator) along with Kosmos Energy.

The Crown and Anchor sidetrack well at Viosca Knoll block 960 was drilled to a true vertical depth (TVD) of approximately 13 000 ft and encountered approximately 50 ft of net TVD oil pay in the M62 Middle Miocene target horizon. The project has moved to the completion phase and will produce through existing subsea infrastructure to the Marlin tension leg platform, requiring nominal additional tie-back costs, with first production targeted by late 3Q21. Talos holds a 34% working interest in the project along with Beacon Offshore Energy (operator) and Ridgewood Crown & Anchor LLC.

Talos President and CEO, Timothy S. Duncan, commented: "Our operations team provided exceptional execution in what was the most active portion of our capital program for the year and I'm pleased that we've delivered strong sequential production over the past two quarters, which does not include the impact of these two latest wells. Our high-quality asset base is delivering solid results, and in combination with commodity price support and continued balance sheet improvement, we're excited to move into the second half of the year focused on numerous strategic initiatives. We look forward to providing a broader update in our upcoming earnings release."

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