Talos Energy, the Houston-based upsytream company, announced today its second quarter financial results; and highlighted the it reached a record oil production rate; and secured substantial profits.
Firstly, the company reported a record quarterly production rate of 66.3 thousand barrels of oil equivalent per day; which exceeded the prior record from the first quarter of 2021. However, this production rate does not include the production from the Tornado Attic and Crown Anchor wells; which will be reported on the 3Q results.
Secondly, as for the Tornado Attic, Talos reports that it successfully drilled the zone and began production of it ahead of schedule. The company increased injection rates to over 30,000 barrels of water per day into the producing B-6 formation.
Thirdly, Talos also announced the successful drilling of the Crown and Anchor development well. Both developments will produce through existing infrastructure requiring nominal additional tie-back costs, with first production targeted by late third quarter of 2021.
Moreover, the company reported a liquidity rate of over $380 million at quarter-end pro forma for $75 million; of additional commitments from DNB ASA, to the credit facility. Talos repaid $65 million of credit facility borrowings during the quarter.
Also recommended for you: Dakota Access Pipeline expansion in Bakken system, completed. Click here to read.
Talos Energy still exploring CCU oportunities along Storegga
In addition, as for the company’s performance, CEO, Timothy Duncan, said. “We had record production of over 66 MBoe/d for the second quarter in a row; as well as very strong Adjusted EBITDA margins of over $36 per Boe; before the impact of hedges, which speaks to the strength of what our oil-weighted assets can deliver in the current commodity environment.”
He also remarked. “We recently announced the successful Tornado Attic well, which will add solid incremental production in the third quarter, and we look forward to starting our Pompano rig program in the coming weeks as well.”
On the other hand, as we reported previously, Talos Energy launched a carbon capture project; along with Storegga; about the joint venture, Talos said that companies are actively exploring opportunities with identified counterparties along the value chain, including emitters, infrastructure providers and landowners, among others.
Finally, about the CCU joint venture, the executive said. “As we expand our asset base, we will continue to focus on producing the lowest possible emissions-equivalent barrels. Our carbon capture and storage joint venture with Storegga takes this commitment a step further; and also turns our focus toward lowering industrial emissions in the communities where we work and live.” Click here to read the full financial report from Talos.
