(WO) – Talos Energy has pegged first oil from the Beacon-operated Monument Wilcox development for the first quarter of 2027, with gross output of 20,000 to 30,000 boed, while its Daenerys appraisal well reached target depth and met its objectives, with Talos expecting additional appraisal, including a sidetrack, in 2027.
The second Monument development well was spud in early September after the rig returned from work on an asset in which Talos holds no interest. The first well reached target depth in June. Completion operations on both Monument wells are expected to commence after the second well reaches target depth. Monument, a Wilcox oil discovery spanning Walker Ridge blocks 271, 272, 315 and 316, is being developed as a subsea tie-back to the Shenandoah production facility (pictured above), with 20,000 bpd of committed firm gross capacity for Monument. Talos said a further prospective location could extend the resource beyond the base development case. Beacon Offshore Energy LLC operates with 41.7%, Talos holds 29.7% and Navitas Petroleum LP 28.6%.
At Daenerys, the appraisal well spud in early July and reached target depth in late August. Talos said the results improved its understanding of reservoir and fluid properties and support further appraisal while it studies development options ranging from a tie-back to a standalone host. Talos expects additional appraisal activity at Daenerys in 2027, including a sidetrack, and it also expects to drill an exploration well in late 2027 or early 2028 on a nearby prospect acquired in the December 2025 BBG1 lease sale. Both leases Talos bid on in the August 2026 BBG3 sale were awarded.
The Talos-operated CPN well achieved first oil in September 2026 and is performing in line with expectations. Talos holds 65%, alongside Walter Oil & Gas Corp. at 25% and Houston Energy at 10%.
The platform-rig Brutus program started during the quarter. Talos has optimized the plan to incorporate batch drilling and completions and expanded the program from four to five wells to include an additional sidetrack opportunity, with first oil expected to be phased from the second through the fourth quarter of 2027.
Outside U.S. waters, Talos announced a farm-in transaction for Repsol-operated Block 29 in Mexico’s Salinas-Sureste basin and, upon closing, will hold 50%. The block holds the Polok and Chinwol oil discoveries, estimated at more than 200 MMboe of gross recoverable resource, with a further 200 MMboe of estimated gross resource potential across multiple on-block exploration prospects, with the partners expecting to progress the project toward FID in 2027. Offshore Honduras, Talos has closed on a 45% operated working interest in a block of more than 4 million gross acres, with a further 35% pending government approval, and commenced a 3D seismic campaign in October, initially targeting a portion of the deepwater acreage.
Third-quarter production averaged 91,500 boed, including 68,500 bopd. Talos closed its $420 million acquisition of Shell deepwater assets on September 22, 2026 and raised its full-year guidance midpoint to 69,000 bopd and 93,500 boed, a figure that also reflects a non-core shelf divestment and the impact from Hurricane Isaias in early October.
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