Zama resource increase

Talos and Premier Oil have announced the successful appraisal of Zama in Block 7 offshore Mexico under the Zama-3 well. Premier has indicated a P90-P10 resource range of 670-970mmboe with P50 of 810mmboe. This further reaffirms the resource base and provides an upgrade to the previous 600mmbbl (oil) estimate.

The Zama-3 well follows:

• The initial Zama-1 discovery in 2017
• Zama-2 appraisal in January 2019
• Zama-2ST1 sidetrack well in April 2019

Zama-3 was drilled 2.4km from Zama-1 and logged 228m of gross pay. The net-to-gross was consistent with prior penetrations. The Zama-3 well was completed 9 days ahead of schedule and on budget.

The entire 3 appraisal well programme finished 39 days ahead of schedule and under budget.

The Zama field is planned to be developed from a single drill centre with drilling from the platform. Three production platforms are envisaged, each with capacity of up to 100mbopd. Produced oil is planned to be transported via a pipeline to the Dos Bocas terminal located onshore, c.70km away from the field.

The Zama partners are: Talos (35% operator), DEA (40%) and Premier Oil (25%).

Premier Oil also has a non-operated interest in Block 30 which could see Mexico transform into another important leg of its portfolio.