Image source: © 2025 Krish Capital Pty.Ltd

Highlights

  • Discovery well hit oil in multiple sub-salt Miocene sands at ~33,228 feet.
  • Well completed 12 days ahead of schedule and about $16 million under budget.
  • Talos holds 27% working interest; appraisal well targeted for Q2 2026 spud.

Talos Energy Inc. (NYSE: TALO) reported a discovery at the Daenerys exploration prospect in the U.S. Gulf of Mexico Walker Ridge blocks 106, 107, 150 and 151 after drilling a deepwater wildcat to a total vertical depth of 33,228 feet. Drilled by the West Vela deepwater drillship, the well encountered oil pay across multiple sub-salt Miocene sands and underwent a comprehensive wireline program that captured core, fluid and log data to evaluate reservoir properties.

Operator Talos will hold a 27% working interest in the discovery. Other partners in the lease package include Shell Offshore Inc. (22.5% W.I.), Red Willow (22.5% W.I.), Houston Energy (10% W.I.), Cathexis (9% W.I.) and HEQ II Daenerys, LLC (9% W.I.). The well has been temporarily suspended to preserve its future utility while the partnership designs an appraisal program intended to delineate the discovered resource. Talos said planning is underway for an appraisal well, with an anticipated spud in the second quarter of 2026.

Operational performance on the well was highlighted in Talos’ release: the program finished roughly 12 days ahead of schedule and delivered approximately USD 16 million of cost savings versus budgeted figures. The wireline data set and core samples will be used to estimate reservoir quality, fluid characteristics and potential recoverable volumes ahead of any appraisal drilling or reservoir evaluation work.

Talos President and Chief Executive Officer Paul Goodfellow noted that the results confirm the presence of hydrocarbons and align with the company’s pre-drill geologic and geophysical expectations. He said Talos and its partners are coordinating an appraisal campaign to further define the discovered intervals and inform next steps.

From an industry perspective, the discovery falls into the category of high-impact, early-stage frontier results: while initial data indicate hydrocarbon presence and favourable drilling metrics, meaningful resource and commerciality determinations require additional appraisal wells, reservoir testing and economic analysis. Key near-term items for shareholders and market observers will include the scope and timing of the planned appraisal program, any updated resource estimates derived from the wireline and core data, and partners’ approvals for follow-on activity.