Talos Energy Announces Portfolio Additions from Lease Sale Results and Execution of Acreage Consolidation Agreements

HOUSTON, Dec. 22, 2023 /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced that it was named as the apparent high bidder on 13 deepwater blocks comprising approximately 74,000 gross acres (approximately 48,000 net acres) in the U.S. Gulf of Mexico Outer Continental Shelf Federal Lease Sale 261 held by the Bureau of Ocean Energy Management ("BOEM") on December 20, 2023. Leases for all blocks remain subject to normal-course, formal award by the Department of the Interior.

Separately, Talos executed Lease Exchange Agreements with BP Exploration & Production Inc. ("bp"), Chevron U.S.A. Inc. ("Chevron"), and Hess Corporation ("Hess") under which the parties are consolidating acreage across 15 blocks in the deepwater Green Canyon area of the U.S. Gulf of Mexico. The consolidation provides the parties the ability to execute prospective drilling opportunities more efficiently upon developing the contributed acreage, which includes several identified prospects. Talos's participation in these blocks is expected to be between 15% and 20%.

Talos President and Chief Executive Officer Timothy S. Duncan commented: "I am pleased with the results of our bidding efforts and for achieving broad success with a high level of activity in Lease Sale 261, adding acreage and prospects to Talos's robust portfolio. The proximity of these prospects to our existing assets, including Ram Powell, Pompano, Prince, and Brutus facilities, bolsters our infrastructure-led, near-field strategy in the Gulf of Mexico while providing opportunities to lower the overall carbon intensity of our assets over time.

"Furthermore, as we look to future growth opportunities, we believe that consolidating prospective lease positions with bp, Chevron, and Hess validates the potential of the acreage we are contributing and could lead to the efficient development of reliable, responsible energy. Combined with our recently announced Repsol joint venture, our lease sale activity and acreage consolidation agreements provide Talos with inventory depth and lay the groundwork for future exploitation and exploration opportunities. We are excited about the resource potential these efforts may contribute to our drilling programs," concluded Duncan.

ABOUT TALOS ENERGY

Talos Energy (NYSE: TALO) is a technically driven, innovative, independent energy company focused on safely and efficiently maximizing long-term value through its Upstream Exploration & Production and Low Carbon Solutions businesses. We currently operate in the United States and offshore Mexico. We leverage decades of technical and offshore operational expertise to acquire, explore, and produce assets in key geological trends while developing opportunities to reduce industrial emissions through carbon capture and storage projects along the U.S. Gulf Coast. For more information, visit www.talosenergy.com.

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