Talos Energy has announced a significant oil discovery at the Daenerys prospect in the Walker Ridge area of the Gulf of America, marking a notable achievement in the region's energy sector. According to energy research firm Wood Mackenzie, this find is the most substantial in the Gulf since 2017. The discovery well, located in Walker Ridge blocks 106, 107, 150, and 151, was drilled to a depth of 33,228 feet using Seadrill’s West Vela deepwater drillship, completed 12 days ahead of schedule and under budget.

The project is led by Talos Energy, holding a 27% working interest, with partners Shell Offshore and Red Willow each at 22.5%, Houston Energy at 10%, Cathexis at 9%, and HEQ II Daenerys at 9%. Wood Mackenzie analysts Jessica Ciosek and James Blackwood noted: "Talos Energy’s Daenerys discovery in the Walker Ridge area is the most material Gulf of America/Mexico oil find since Shell’s Whale in 2017." The find could yield over 50 million barrels of oil equivalent in net proved reserves, with peak production potentially reaching 65,000 barrels per day.

This discovery highlights a strategic shift for Talos, moving from lower-risk, infrastructure-focused exploration to high-impact projects. The Daenerys well confirms the westward extension of the Subsalt Miocene trend into an area previously known for Paleogene-aged fields. Analysts suggest this could enhance competition in the Walker Ridge region during the lease sale scheduled for December 2025.

Development options include a potential tie-back to the Occidental Petroleum-operated Heidelberg field or the establishment of a new production hub. The project benefits from provisions in recent U.S. legislation, which may facilitate further discoveries by allowing production from multiple stacked reservoirs through a single wellbore. Wood Mackenzie emphasized: "The Daenerys discovery could reshape the exploration strategy for Gulf of America’s Walker Ridge area."

Talos is also advancing two additional exploration prospects, Enterprise and Hershey, each with estimated resources exceeding 100 million barrels of oil equivalent. These initiatives signal the company’s commitment to expanding its presence in high-impact exploration, potentially strengthening its portfolio in the Gulf.

The efficient execution of the Daenerys well underscores Talos’s operational capabilities, with ongoing plans for an appraisal well in 2026 to further assess the resource. This discovery is expected to contribute significantly to the region’s energy landscape, supporting economic growth and energy supply stability.