Talos Energy's Exploration Strategy and Near-Term Plans

Talos Energy is actively pursuing a robust exploration strategy to expand its long-term development reserves, as outlined by CEO Paul Goodfellow. The company's immediate focus is on the Daenerys appraisal well in the US Gulf, expected to spud in the second quarter of 2026 once a rig is available. This well aims to reduce subsurface uncertainty, particularly regarding reservoir quality and fluid characteristics in the northern part of the prospect. It is designed to penetrate multiple prospective intervals and includes sidetrack flexibility for potential extension. Results are anticipated by the end of 2026, guiding decisions on further drilling. Preliminary estimates suggest Daenerys could add over 50 million barrels of oil equivalent in net proven reserves.

Beyond Daenerys, Talos is advancing exploration tied to 11 leases from the December 2025 US Gulf lease sale. Within these blocks, the company has identified eight prospects with a combined gross, risked resource potential exceeding 300 million barrels, focusing on Miocene and Wilcox plays. Recent reprocessed seismic data provides a technical edge, and work is underway to mature these prospects to drill-ready status by 2027, allowing them to compete for capital. Goodfellow emphasized that exploration decisions are driven by low break-even economics and resilience through the cycle, not short-term oil price movements, underscoring a disciplined approach to building a long-lived scale portfolio for future growth.