Talos Energy Readies for New CEO
February 27, 2025
Talos Energy has announced its fourth quarter and year-end 2024 financial results, reporting a net loss of $64.5 million for the quarter and $76.4 million for the year.
Production for the year was 92.6 MBoe/d (71% oil, 80% liquids).
Talos Interim CEO, Co-President and General Counsel William Moss stated, "Talos had a strong fourth quarter and a solid finish to 2024, with our operations performing well and achieving key objectives for the year. We look forward to Paul Goodfellow joining Talos as our President, Chief Executive Officer and member of the Board in the next few days. The Talos Board is confident that Paul's extensive expertise in oil and natural gas, especially in deepwater operations, combined with his strategic judgment and proven track record, will play a vital role in advancing Talos. Under Paul's leadership, we expect to remain focused on leveraging our strengths in deepwater exploration and production to deliver value for all shareholders."
Goodfellow has over 30 years of domestic and international experience in the oil and natural gas industry, having led Shell's global deepwater business and overseeing Shell's internal audit function.
In December 2024, Katmai West #2 well was drilled under budget and a month faster than expected, encountering over 400 feet of gross hydrocarbon pay with excellent rock properties. First production is expected later in the second quarter 2025. The strong performance from Katmai West #1 well, and the successful appraisal from Katmai West #2 well, have nearly doubled the proved estimated ultimate recovery (EUR ) of Katmai West field to approximately 50 MMBoe gross, which further affirms Talos's estimated gross resource potential of approximately 100 MMBoe. The greater Katmai area is estimated to contain up to a total resource potential of 200 MMBoe. Talos, as operator, holds a 50% working interest, with entities managed by Ridgewood Energy Corporation holding the other 50% in Katmai West field.
Talos recently commenced completion operations on Sunspear with the West Vela deepwater drillship and expects first production late in the second quarter 2025. Talos projects production to be approximately 8-10 MBoe/d gross. Sunspear will be tied back to the Talos operated Prince platform. Talos holds a 48.0% working interest.
Talos anticipates focusing on drilling operations on the Daenerys well in the second quarter 2025. Talos holds a 30% working interest in the project.
Talos recently agreed to increase its interest in the Monument discovery to a 29.76% working interest, up from 21.4% working interest. Monument is a large Wilcox oil discovery in Walker Ridge blocks 271, 272, 315, and 316. It will be developed as a subsea tie-back to the Shenandoah production facility in Walker Ridge. First production is expected between 20–30 MBoe/d gross by late 2026 under restricted flow due to facility rate constraints. There is an additional 25–35 MMBoe drilling location adjacent to the discovery that could extend the resource. Other partners include Beacon as operator with a 41.67% working interest and Navitas Petroleum with a 28.57% working interest.
In December 2024, Talos entered into an agreement to sell an additional 30.1% interest in Talos Mexico to a subsidiary of Grupo Carso for $49.7 million in cash, with an additional $33.1 million due on first oil production from the Zama Field, for an aggregate price of $82.7 million. Once finalized, Talos Mexico will be owned 20.0% by Talos Energy and 80.0% by Carso. Talos Mexico holds a 17.4% interest in the Zama Field. Upon achievement of commercial production from the Zama Field, Talos anticipates receiving $82.9 million in cash contingent considerations, comprised of approximately $33.0 million relating to the pending transaction and $49.9 million from the sale of a 49.9% equity interest in Talos Mexico to Carso which occurred in September 2023.
