The first deal for drilling has been issued as a joint venture between three companies. Premier Oil, Sierra Oil and Gas, and Talos Energy are going to be the first three in. They are exploring a region known as the Sureste Basin. It is believed that there may be anywhere from one-hundred to five-hundred million barrels of oil in that region.
Talos Energy in particular has been excited about their opportunity to finally do this. The Houston-based company has specialized in the Gulf of Mexico for its whole existence. They are just now getting their chance to get into some areas that they were previously banned from. The new changes to the regulations could really boost their portfolio.
Talos remains a growing regional company that would like to see a big score here help them to expand even farther. It is entirely possible that a big find in this area could definitely spur on some great headlines for them. It could also encourage the government of Mexico to continue to permit private companies to take their changes in the region.
Market analysts who following the oil and gas industry say that this is one of the biggest events in the industry to keep an eye on this year. They want to keep monitoring it because they know that this is such a historical moment and it could be game-changing for future exploration.
Talos Energy has taken on a thirty-five percent stake in the project while Sierra has a forty percent ownership stake and Premier the remaining twenty-five percent. This means that all three partners have something pretty important at-risk with this project. They are going to try to do an absolutely amazing job so as to convince the government to permit them to do another project down the line.