Talo Energy is a renowned company that enjoys a significant market percentage in the global gas and oil industry. The company acquired Energy Resource Technology in 2013 to increase its market share. Before the acquisition deal, ERT had completed exploring oil in Phoenix and had discovered approximately 100 feet of oil in the area.
The oil mining company has currently established itself in the Gulf of Mexico and the Gulf Coast. It recently collaborated with two firms to drill the first offshore well that that will be owned by private investors in the area. The Mexican government had strict legislation that regulated the oil and gas sector, but it recently liberalized the industry to make it friendly to private companies. Talo took the opportunity to explore and extract oil from the Suretse basin.
The well that Talo is currently extracting oil from is known as Zama-1. The firm estimates that the source might have approximately 100 to 500 million barrels of oil, and therefore, it is an economically viable venture. Talo Energy is the second largest shareholder in the Zama wells enterprise, and it holds about 35 percent. Another stakeholder is the London-based Premier Oil Plc, which owns 25 percent and the remaining 40 percent is owned by Sierra Oil. Different analysts have been giving their views on the economic power of the Suretse Basin, where the Zama well is based. Elaine Reynolds, who works at Edison Investments Research Ltd (London) as an analyst, thinks that the region will be impacted positively by the exploration of oil. The expert believes that the project is likely to be profitable.
The new reforms that are being made in the oil and gas sector by the government of Mexico are likely to attract several private investors in the region. Data from analysts indicate that the area will be highly competitive in future. Many foreign companies are likely to establish their business at the Gulf of Mexico and the Gulf Coast. Charlie Sharp, who works for Canaccord Genuity Ltd, believes that drilling the Zama well will transform the gas and oil market in Mexico and the rest of the world.
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