The Zama-1 Well signify a new dawn for the Mexico’s oil industry that has been under the monopoly of Petróleos Mexicanos (also known as Pemex) for close to 80 years. The oil well is located in the Sureste basin off the state of Tabasco. The Zama Well is a joint initiative of three companies; one Mexico’s firm (Sierra Oil & Gas) and two international companies (Premier Oil Plc. and Talos Energy LLC). The three firms commissioned the drilling of the well on May 21, 2017, and they were optimistic that the well would be ready for use in 90 days.
According to a statement issued by the UK based Premier Oil a week before the commissioning of the drilling process, the Zama Well is endowed with an approximated 100 million to 500 million of crude oil. Also, the company which owns 25 percent stake in the venture made it known that the well would cost it over $16 million.
Oil and the energy sector, in general, attract attention from investors and analysts alike because of the potential for massive profits. As soon as the three companies announced that they would drill the first non-Pemex well in 80 years, the news drew the attention of analysts such as Charlie Sharp and Elaine Reynolds among others. Reynolds of UK’s Edison Investment Research and Sharp of Canaccord Genuity shared similar sentiments; the well would alter the prospects of Mexico’s oil sector that has been ailing since 2007.
The other two companies bestowed on the Houston based Talos Energy the privilege of operating the Zama Well. Talos Energy owns a 35 percent stake in the venture. Talos Energy came to life in 2012 with interest to explore, develop, or acquire oil and gas properties in the Gulf Coast and the Gulf of Mexico.
Talos Energy is under the stewardship of the CEO Tim Duncan. As the head of the company, Duncan is interested in motivating employees through awarding them with equity regardless of their position in the company. In 2013, WorkplaceDynamics voted Talos the “Best Workplace among Local Small Businesses.” Also in the same year, the firm signaled an inorganic growth strategy by acquiring an oil and gas subsidiary of Helix Energy Solutions.
To Know More Click Here