One-hundred to five-hundred million barrels of oil. That is the estimate for how much oil could be found in the Sureste Basin off of the coast of Mexico. Not a bad find if someone could just get to it. For nearly the last eighty years it was not possible. The only company permitted to drill in the region was the state-owned Mexican oil company. That is not the case anymore. Last year the people of Mexico voted in favor of permitting private companies to get involved.
Private companies Talos Energy, Sierra Oil and Gas, and Premier Oil have been selected to pay a fee to be allowed to conduct a joint venture into the waters of the Sureste Basin to look for the oil. All three have teamed up to try to make this work.
Talos Energy is one of the big regional players. They are based in Houston and have been itching to get their drills down into these waters for some time. Any oil find in the area could easily be transported back to their headquarters and sold on from there. It could be a very nice payday for them if estimates of how much is down there turn out to be anywhere close to true.
The people on Wall Street who follow these types of things are absolutely foaming at the mouth at the idea that these private companies have been allowed such access. They are keeping a keen eye on how things are developing, but it is safe to say that they are very excited by what they have seen so far. They are saying that this could be the biggest story in the industry this year if it turns out to be anything close to accurate on the predictions.
The Sureste Basin is a region largely untouched by any oil company and thus could be teaming with oil. If the companies are successful in finding a lot of oil in the area, then expect that they will petition to have more exploration of the region in the future. They are not about to stop if this one turns out to be as good as it seems like it might be.