Talos Energy Farms Into Offshore Mexico Development

HOUSTON, July 27, 2026 – Talos Energy Inc. announced July 27, 2026, that it has executed a definitive agreement to farm into the Block 29 development project offshore Mexico. The company will acquire a 50% working interest in the project, operated by Repsol, S.A., for a contingent $30 million payment at final investment decision, a cash carry of up to $20 million on the next exploration well, and reimbursement of certain pre-closing costs.

Block 29 is located in the Salinas-Sureste Basin in the southern Gulf of Mexico, an area that has experienced over a dozen deepwater discoveries. The block contains the Polok and Chinwol oil discoveries, estimated to hold more than 200 million barrels of oil equivalent (MMBoe) in gross recoverable resources. The block also includes multiple identified exploration prospects.

Talos Energy plans to leverage its deepwater technical expertise for this project, which it notes is analogous to fields it has successfully developed in the U.S. Gulf of Mexico. The company expects to progress the project toward a final investment decision in 2027. The transaction is subject to customary closing conditions, including approvals from Mexico's energy ministry (SENER) and the National Anti-trust Commission.

Talos Energy President and CEO Paul Goodfellow stated the farm-in adds a high-quality, large-scale development opportunity and meaningful exploration upside to the company's strategy. The transaction is expected to strengthen the company's growth portfolio and support long-term value creation, particularly when combined with a recently announced acquisition in the U.S. Gulf of Mexico.