First Private Oil Well in 80 Years Signals Positive Change for Mexico

It’s been nearly 80 years since a private organization has built a new oil well off the shore of Mexico’s waters. The recent sinking of a new oil well that is privatized means that Mexico is opening its waters up to foreign investment again for its energy market and learn more about Talos Energy.

The venture, performed jointly by Premier Oil Plc (out of London), Talos Energy LLC (out of Houston), and Sierra Oil & Gas (out of Mexico), started on May 21. This is the day they began drilling, according to Premier’s statement. The only company to launch an offshore exploration well since 1938 when the company nationalized its oil industry is Mexico’s own Petroleos Mexicanos, a monopoly run by the state.

The well is called Zama, and it lies off the coast of Tabasco, a state in Mexico, in the Sureste Basin. The well is estimated to hold 100 million, even as much as 500 million, barrels of crude oil. It will cost $16 million to Premier. The companies bid in 2015 to win the rights to drill after Mexico opened their declining oil industry to foreign and private investment.

Due to the basin’s structure where they are drilling, industry experts predict a high likelihood of success. This, combined with the fact that Pemex isn’t the one drilling, should be of keen interest to the rest of the industry who will be watching closely. The shares of the well are divided very evenly, with Talos operating it and taking 35%, Sierra having 40%, and Premier holding a 25% stake and Talos Energy on Facebook.

Talos Energy is a private oil and gas company focusing on exploration, acquisition, and production of oil off the Gulf Coast and Gulf of Mexico. Talos is backed by numerous investment funds. It recently acquired Helix Energy Solutions for $600 million and Talos’s lacrosse camp.

The company has a work-hard play-hard atmosphere. Being a private company, they have unique compensation packages and perks, such as daycare at the office and happy hours on Friday. In addition, the employees, even geoscientists and receptionists, participate in profit sharing by getting a piece of the company’s equity. With an estimated revenue of $500 million this year, the company is well positioned to grow even more in the coming months and years and more information click here.