Given the Trump administration’s zest to bolster oil and gas resources, offshore operators are taking action to find more hydrocarbon resources. While drilling activities are ongoing at one development in the Gulf of America (U.S. Gulf of Mexico), appraisal operations are slated to kick off at another project before the end of the second quarter of 2026.

The drilling operations have begun at Monument with continuous drilling and completion activities planned throughout 2026, as first production, which is expected between 20–30 million barrels of oil (boe) per day gross, remains on track by late 2026. This is a large Wilcox oil discovery in Walker Ridge blocks 271, 272, 315, and 316, operated by Beacon Offshore Energy (41.7%), with Talos Energy (29.7%) and Navitas Petroleum (28.6%) as its partners.

Monument is being developed as a subsea tie-back to the Shenandoah production facility in Walker Ridge with a committed firm capacity of 20 million bbl/d. Talos claims that there is a prospective drilling location that could extend the resource beyond the base development case.

The company also anticipates drilling operations to start on the Daenerys appraisal well late in the second quarter of 2026 to further define the discovered resource on Walker Ridge blocks 106, 107, 150, and 151.

The initial discovery well, drilled to a total vertical depth of 33,228 feet utilizing the West Vela drillship, encountered oil pay in multiple high-quality, sub-salt Miocene sands. Talos is the operator (27%) of the project, with Shell Offshore (22.5%), Red Willow (22.5%), Houston Energy (10%), HEQ II Daenerys (9%), and Cathexis (9%) as partners.

The discovery well has been temporarily suspended to preserve its future utility. The operator feels encouraged by the Daenerys discovery well’s results, which confirm the presence of oil and validate the firm’s geologic and geophysical models.

Talos drilled and completed the Cardona well in late 2025, with production commencing in early 2026 and flowing to its owned Pompano facility. The firm holds a 65% operated interest, and an entity managed by Ridgewood has the remaining 35% stake.

The company also drilled the CPN well and finished well completion operations in the first quarter of 2026, with first production from the well expected in the third quarter of 2026. Talos is the operator (65%), while its partners are Walter Oil and Gas (25%) and Houston Energy (10%).

The company closed the sale of a 30.1% interest in Talos Mexico to Zamajal, a subsidiary of Grupo Carso, for $83 million, $50 million of which was received at closing, with the remaining due upon the achievement of commercial production from the Zama field.

Talos was an active participant in the Gulf of America lease sale held in December 2025, where it was named as the apparent high bidder on 11 new leases for approximately $15 million. All 11 awarded leases bring eight new development and exploration prospects into the company’s portfolio.

Paul Goodfellow, President and Chief Executive Officer (CEO) of Talos, commented: “Looking ahead to the rest of 2026, we are excited to return to Daenerys and drill an appraisal well in the second quarter to further inform our understanding of the discovered resource.

“While the macro environment is sure to remain volatile, Talos is well positioned to execute on our strategic priorities while staying guided by our disciplined capital allocation framework.”

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