A monopoly market does not allow the forces of demand and supply to run the industry. On the contrary, it is the producer’s sole decision especially in issues of pricing and business strategy that drives a monopoly. The Petroleos Mexicanos is a state owned company that has been running the industry for a very long time. However, just recently, some deposits on the Pemex platform have been of interest to the incumbent oil industries.
The Premier Oil PLC, based in London, the Houston’s Talos energy and the Mexican Sierra Oil & Gas have come together in pursuits of the natural resource. They have been licensed to explore the Zama- 1 well which is situated at the Sureste Basin in the Tabasco State. The companies will share the stake in the ratios of 25 %, 35% and 40% for the Premier, Talos, and Sierra respectively. The Elaine Reynolds of the Edison Investment Research from a recent release revealed that the well could have rich potent in geological deposits.
It has been reported that the Zama-1 could have a range of 100- 500 million barrels of crude oil by the Premier Oil PLC. The extraction and drilling are likely to take 90 days at the cost of $16 million. Charlie Sharp of Canaccord Genutiy observes that this will be captivating to watch the unfolding of the well.
About Talos Energy
Talos Energy is an oil and gas company based in Houston but with affiliate branches spread out. It is in partnership with the Apollo Global Management and the Riverstone Holdings LLC that have directly invested $600 million equity into Talos energy from 2012. The company’s President and Chief Executive Officer is Tim Duncan. Through him, the company is looking for opportunities on the lower Gulf Coast and the Gulf of Mexico.
Other than the Zama-1 well which they gained patent rights to it, Talos Energy in the expansion is seeking mergers and acquisitions. It acquired the Energy Resource Technology (ERT) at the cost of $620 million. This company is a unit of the Helix Energy Solutions Group. The ERT along with the Wang Exploration well generated 16,155 barrels with deposits at the height of 100 feet.