Talos Enters Next Phase at Monument: Second Well Drilling, Then Completions on Both

Talos Energy (NYSE: TALO) says drilling is set to start on the second development well at its Monument project in the Gulf of America. Completion operations on both wells will follow. The company has not given a start date for the second well, and it expects first oil from Monument by late 2026.

The first well reached a total measured depth of 32,250 feet and found 245 feet of net pay, which Talos said confirmed pre-drill expectations. The company did not state its working interest in Monument, and the well was announced by the operator.

Why it matters

Talos reports total oil reserves of 7.076 million barrels on a P50 (best-estimate) basis, stated July 1, with a 100% company interest. If Monument reaches first oil on schedule, it would add production from a project that is already well along. The company has not said how much Monument is expected to contribute.

Monument is not the only item on the company's agenda:

• Pending acquisition: Talos agreed on June 30 to buy, with a Ridgewood Energy affiliate, deepwater assets from Shell Offshore. Its share is $850 million before adjustments, which it expects to bring to about $450-$500 million net, assuming a September 1 closing. The assets carry about 23 million barrels of oil equivalent of proved reserves and 10 million of probable reserves. Closing is expected by the end of 2026.
• Financing: Talos issued $800 million of 8.000% notes due 2034 in July, using part of the proceeds to redeem its 9.000% notes and the rest toward the acquisition.
• Mexico: In July it took a 50% interest in Repsol's Block 29 offshore Mexico.

What remains uncertain

The Shell deal is subject to antitrust clearance and preferential purchase rights. BP could exercise its right over the Na Kika interests, in which case Talos would acquire only the Coulomb field interest. The company has said it will update its 2026 guidance after closing.

In the quarter ended June 30, Talos reported revenue of $664.8 million and net income of $149.7 million. BlackRock reported holding 19,470,315 shares, or 11.70% of votes. An insider, Empresarial De Capitales, sold 339,568 shares at $16.80 in May.