Talos Energy Inc. announced on March 16 that Bayou Bend CCS LLC, Talos's venture with Carbonvert Inc. has executed definitive lease documentation with the Texas General Land Office (GLO), formalizing the previously announced carbon capture and sequestration (CCS) site located offshore Jefferson County, Texas, near the Beaumont and Port Arthur, Texas industrial corridor.

Talos separately announced that it had established a CCS strategic alliance with Core Laboratories to provide technical evaluation and assurance services for CCS subsurface analysis, including the company's upcoming 2022 stratigraphic evaluation wells.

Texas GLO Lease

On March 11, 2022, Talos and Carbonvert had jointly executed lease documentation with the GLO establishing the first ever major offshore carbon sequestration site in the United States. The lease comprises more than 40,000 acres immediately adjacent to the Beaumont and Port Arthur, Texas industrial corridor and maintains an estimated sequestration capacity of 225 to 275 million metric tons of CO2. The project will be known as Bayou Bend CCS. Talos will be the operator and holds a 50% equity interest.

"We are pleased to reach definitive agreements with the State of Texas and look forward to making significant progress on this important CCS hub opportunity in 2022," Talos President and CEO Timothy S. Duncan, said in a press release.

Strategic alliance

Separately, on March 5, 2022 the company established a technical alliance with Core Lab to advance CCS site characterization, including stratigraphic evaluation wells, reservoir core sampling, geological assessment and rock and fluid sample analysis, all of which are critical inputs for EPA Class VI permit applications. The alliance also provides a framework for future collaboration around transparent CO2 stream monitoring and verification. Core Lab is a leading global provider of reservoir description and enhancement products and services and currently partners with Talos on numerous upstream subsurface activities.

Talos Executive Vice President Low Carbon Strategy and Chief Sustainability Officer, Robin Fielder, commented: "We are pleased to announce this strategic alliance with Core Lab to deliver technical assurance for our growing portfolio of sequestration sites and, ultimately, for our customers. Capitalizing on our respective subsurface expertise, this alliance strengthens our technical capabilities leading up to the filing of CO2 injection well permits this year and advances TLCS's ability to deliver high-quality, end-to-end CCS solutions to customers across the Gulf Coast."

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