Houston-based Talos Energy said Jan. 16 that the Tornado 3 well hit pay in the Green Canyon area of the U.S. Gulf of Mexico.

Drill to a total depth of 21,600 ft by the Noble Don Taylor rig, the well logged about 200 ft gross and 130 ft net of true vertical pay, the company said in an update given as part of its 2019 operating and financial guidance. The well is expected to be online by early second-quarter 2019, producing between 10,000 barrels of oil equivalent per day (boe/d) and 15,000 boe/d.

Talos has a 65% working interest. Partner Kosmos Energy holds the remaining interest.

In other news, Talos said drilling is underway at the Boris 3 development well, which will be competed and tied back to the Helix Producer-1 (HP-1) floating production unit along with Tornado 3. Plans are for Boris 3 to be brought online in the second quarter with gross production expected at between 3,000 boe/d and 5,000 Boe/d.

Meanwhile, HP-1 is set to undergo a regulatory required dry-dock period. Due to the requirement, the company said the Phoenix complex—which includes the Tornado, Boris and Typhoon fields—will be shut-in for about 45 to 60 days.

“The impact of the shut-in on the first quarter of 2019 production is estimated to be between 9.0 – 13.0 MBoe/d, whereas the annualized impact for full year 2019 production is estimated to be between 2.0 – 3.0 MBoe/d,” the company said in the release. “This impact is already accounted for in our annual guidance.”

On Mexico’s side of the GoM, the first appraisal well of the Zama discovery is being drilled.

“This is the first of three penetrations expected in the Zama reservoir and progress will be reported shortly,” Talos said in the release. “The goals of the first appraisal penetration are to (i) look for a full section of Zama sand in a downdip location, (ii) find the oil water contact within our expected subsea depth range, (iii) understand the rock properties of the aquifer and its potential impact on recovery, and (iv) deepen the well approximately 500 meters to test the Marte exploration prospect.”

Another drilling program is taking place on the U.S. shelf, where Talos said the Ensco 75 rig is drilling the East Cameron 345/359 project. The work follows the completion of a two-well program in the Main Pass Block 72 Field, where the A-8ST1 is producing about 1,000 Boe/d gross. The A11ST1 well is expected to begin production from the BA5 sand in first-quarter 2019, Talos said.

Talos said it plans to produce on average between 53,000 and 56,000 boe/d and spend between $465 million and $485 million in 2019.

Offshore