Talos Energy announces discovery at Daenerys Gulf of Mexico prospect

HOUSTON - Talos Energy Inc. (NYSE:TALO), a $1.4 billion market cap energy explorer currently trading at $8.20 per share and identified as undervalued by InvestingPro analysis, reported on Tuesday the successful drilling of its Daenerys exploration prospect located in the U.S. Gulf of Mexico’s Walker Ridge area.

The discovery well reached a total vertical depth of 33,228 feet and encountered oil in multiple high-quality, sub-salt Miocene sands, according to a company press release. The well was completed approximately 12 days ahead of schedule and $16 million under budget, a significant achievement for the company, which maintains a healthy 72% gross profit margin and generated $1.93 billion in revenue over the last twelve months.

Talos conducted comprehensive wireline testing, collecting core samples, fluid, and log data to evaluate the reservoir. The well has been temporarily suspended for potential future use.

As operator, Talos holds a 27% working interest in the project, with partners including Shell Offshore Inc. (22.5%), Red Willow (22.5%), Houston Energy, L.P. (10%), Cathexis (9%), and HEQ II Daenerys, LLC (9%).

"We are encouraged by the results of our Daenerys discovery well, which confirms the presence of hydrocarbons and validates our geologic and geophysical models," said Paul Goodfellow, Talos President and Chief Executive Officer.

The company is planning an appraisal well to further define the discovered resource, with drilling expected to begin in the second quarter of 2026.

The Daenerys prospect spans Walker Ridge blocks 106, 107, 150, and 151 in the deepwater Gulf of Mexico. The discovery well was drilled using the West Vela deepwater drillship.

In other recent news, Talos Energy reported its financial results for the second quarter of 2025, surpassing earnings expectations with an EPS of -$0.27, slightly better than the forecast of -$0.28. However, the company did not meet revenue projections, reporting $424.7 million against the anticipated $440.3 million. Despite this revenue shortfall, investor sentiment remained positive, attributed to operational efficiencies and strategic initiatives. In a move to bolster its offshore operations strategy, Talos Energy announced the addition of three executives to its leadership team. Zachary B. Dailey will take on the role of Executive Vice President and Chief Financial Officer, effective August 18. He will replace Gregory M. Babcock, who has been serving in an interim capacity and will return to his position as Vice President and Chief Accounting Officer. These developments reflect Talos Energy’s ongoing efforts to strengthen its leadership and operational strategies.

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