Talos Encounters Major Hydrocarbon Reserves in the Gulf of Mexico

Core Insights - Talos Energy Inc. has discovered significant quantities of oil and natural gas at the Katmai West 2 well in the U.S. Gulf of Mexico, with plans to conclude casing and suspension by late January 2025 [1] - The well was completed under budget and ahead of schedule, with production expected to start in the second quarter of 2025 [2] - The Tarantula facility has been upgraded to handle larger volumes, increasing its capacity to approximately 35 Mboe/d [3] Production and Resource Potential - The production capacity of the Katmai West 2 well aligns with pre-drill expectations of approximately 15-20 MBoe/d, increasing the estimated ultimate recovery (EUR) of the Katmai West Field to about 50 million barrels of oil equivalent (MMBoe) [5] - Total recoverable resources from the region are projected to be around 100 MMBoe, with significant value expected to be generated in 2025 [6] Operational Constraints - Despite the increased capacity of the Tarantula facility, production from the Katmai wells is expected to be rate-constrained to maintain a flat-to-low decline production over time [4]