Troika (GC244) - Quarternorth Energy

Location

The Troika (GC244) oil and gas field is located in the federal offshore waters of the United States, specifically in the Green Canyon area of the U.S. Gulf of Mexico. It is situated approximately 22 kilometres (14 miles) southeast of the Bullwinkle fixed platform.

Operator and Ownership

As of the recent acquisition, the field is now operated by Talos Energy, following the company's purchase of QuarterNorth Energy. Prior to this, QuarterNorth Energy was the operator and held significant interests in the field.

Field Characteristics

• Type: Troika (GC244) is a producing conventional oil field located in deepwater.
• Depth: The field is in deepwater, which is characteristic of many fields in the Green Canyon area.

Production

• The field is part of QuarterNorth Energy's portfolio, which has been integrated into Talos Energy's operations. While specific production figures for Troika alone are not detailed, it is part of the broader portfolio that adds approximately 30,000 barrels of oil equivalent per day (boed) to Talos Energy's production, with about 75% of this being oil.

Geology and Reserves

• The field is one of the several prolific offshore fields owned by QuarterNorth Energy, now under Talos Energy. These fields are known for their high-quality deepwater assets with favorable base decline profiles and attractive future development opportunities.

Development and Infrastructure

• The Troika field, along with other QuarterNorth Energy assets, benefits from existing operated infrastructure. This infrastructure is expected to enhance Talos Energy's operational breadth and production profile while improving margins and cash flow.

Future Prospects

• The acquisition of QuarterNorth Energy's assets, including Troika, brings significant reserves upside beyond current production. This includes potential from producing probable zones and near-term development opportunities in 2024 and 2025. The field is part of a high-quality inventory of drilling opportunities that will compete for capital within Talos Energy's portfolio.

Financial and Strategic Impact

• The integration of Troika and other QuarterNorth Energy assets is expected to improve Talos Energy's base decline rate by approximately 20%, providing increased production stability and lower reinvestment rates. This transaction is also accretive on key metrics, accelerates de-leveraging, and improves the credit profile of Talos Energy.