1. Talos achieved successful drilling results at Daenerys prospect. 2. Well drilled 33,228 feet, encountering high-quality oil pay. 3. Project completed $16 million under budget and ahead of schedule. 4. Talos holds 27% interest; partners include Shell and Houston Energy. 5. Appraisal well anticipated in Q2 2026 to further assess resources.
Successful drilling results indicate significant resource potential, akin to previous successful projects that boosted stock prices, such as the successful completion of the Puma project in 2022, which led to increased investor confidence and stock appreciation.
The announcement directly affects TALO's operation and market perception, integrating competitive positioning and future prospects that will likely influence investor sentiment and valuation.
The planned appraisal well and further development could enhance long-term resource evaluation and revenue potential, similar to long-term gains seen post-discoveries in the Gulf region.
HOUSTON, Aug. 19, 2025 /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE:TALO), today announced successful drilling results at the Daenerys exploration prospect located in the U.S. Gulf of America Walker Ridge blocks 106, 107, 150, and 151.
The discovery well was drilled to a total vertical depth of 33,228 feet utilizing the West Vela deepwater drillship and encountered oil pay in multiple high-quality, sub-salt Miocene sands. A comprehensive wireline program was conducted, acquiring core, fluid, and log data to evaluate the reservoir. The well was drilled approximately 12 days ahead of schedule and delivered approximately $16 million under budget. Planning is underway for an appraisal well to further define the discovered resource. The discovery well has been temporarily suspended to preserve its future utility.
Talos, as operator, will hold a 27% working interest ("W.I."), Shell Offshore Inc. will hold a 22.5% W.I., Red Willow will hold a 22.5% W.I., Houston Energy, L.P. will hold a 10% W.I., Cathexis will hold a 9% W.I., and HEQ II Daenerys, LLC will hold a 9%.
Talos President and Chief Executive Officer Paul Goodfellow stated, "We are encouraged by the results of our Daenerys discovery well, which confirms the presence of hydrocarbons and validates our geologic and geophysical models. We believe these results support Talos's pre-drill resource assumptions. We are now working closely with our partners to design an appraisal program that will further delineate this exciting discovery. We anticipate spudding the appraisal well in the second quarter of 2026."
ABOUT TALOS ENERGY
Talos Energy (NYSE:TALO) is a technically driven, innovative, independent energy company focused on maximizing long-term value through its Exploration & Production business in the United States Gulf of America and offshore Mexico. We leverage decades of technical and offshore operational expertise to acquire, explore, and produce assets in key geological trends while maintaining a focus on safe and efficient operations, environmental responsibility, and community impact. For more information, visit www.talosenergy.com.
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
This communication may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this communication, regarding our strategy, future results of operations, financial position, the timing and results of the Daenerys appraisal well, the resource potential of the Daenerys project, prospects, plans and objectives of the Board and management are forward-looking statements. When used in this communication, the words "will," "could," "believe," "anticipate," "intend," "estimate," "expect," "project," "forecast," "may," "objective," "plan" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.
Should one or more of the risks or uncertainties described herein occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. We cannot assure you that the appraisal well will be successful, or that it will result in commercially viable production or reserves. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this communication.
INVESTOR RELATIONS CONTACT
Clay Jeansonne
Clay.Jeansonne@talosenergy.com
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SOURCE Talos Energy