Drilling for oil and gas in deepwater is not for the timid, but Talos Energy and its founder, Tim Duncan, are up to the task. It would be easy to drill the Permian Basin like almost every other natural gas and oil company, and it would be a lot less expensive, but Talos Energy likes to go for the longevity that comes from drilling offshore where resources are big and can last for decades. Disaster can strike at any time when drilling offshore. Talos Energy has seen first hand what an offshore oil disaster can do and the havoc it can cause. Back in 2005, Talos’ biggest asset was the Phoenix Field located 165 miles south of New Orleans.
The field consisted of half a dozen wells tethered to a platform 4,000 feet above the seafloor. Hurrican Rita hit hard and capsized the platform sending it drifting across the Gulf, Talos faced the problem head-on, cleaned up the mess, and restored the platform. The Phoneix Field now produces 16,000 barrels per day and is expected to produce more in the future. It seems that Tim Duncan is a man who knows how to face a problem and turn it around to his advantage.
With a desire to take Take Talos Energy public, Duncan negotiated a merger between Talos and Stone Energy. The merger allowed Duncan to take his company public without the high expense of a public offering. Last year, Duncan seized an opportunity to acquire auctioned acreage in Mexican waters. Teaming up with Premier Oil and Riverstone-backed Sierra Oil & Gas, Talos and its partners drilled the first Mexican offshore well not drilled by the states monopoly, Pemex. The outlook is promising. After dilling 1000 feet, oil-soaked sandstone was hit. The field could produce as much as 2 billion barrels of oil in the next five years.