Houston's oil firm announces significant discovery in Mexico's waters

HOUSTON, July 12 (Xinhua) -- The Houston offshore production company Talos Energy LLC on Wednesday announced a "significant" oil discovery in a region along the southern coast of the Gulf of Mexico.

According to a news release by Talos Energy, the Zama-1 exploration well, offshore Mexico, has discovered oil. Talos holds a 35 percent participation interest with Sierra Oil and Gas S. de R.L de C.V. and Premier Oil Plc holding 40 percent and 25 percent respectively.

The Zama-1 well is the first offshore exploration well drilled by the private sector in Mexico's history. The well, located in 166 meters of water and approximately 60 km from the Port of Dos Bocas, has reached an initial shallow target vertical depth of approximately 3,383 meters.

Initial gross original oil in place estimates for the Zama-1 well range from 1.4 to 2.0 billion barrels, exceeding pre-drill estimates, some of which could extend into a neighboring block.

Talos is a technically driven independent exploration and production company focused on the exploration, development and acquisition of oil and natural gas.