As oil prices continue to stay at low prices and competition continues to be at an all time high for oil drilling contracts, a new discovery made by an oil and gas exploration company has tons of energy companies scampering to see how they can also increase their production rights for years to come. Current energy companies have recently become aware of the fact that the energy exploration company, PEMEX, has discovered a new oil reserve that is located off the coast of Mexico. This discovery has been dubbed the Zama-1 well.
Multiple energy companies that are known to drill for oil, are rushing to make bids on the drilling project where Zama-1 is located.The Zama-1 discovery is estimated to be an oil bearing interval of more than a thousand feet and the recovery of energy is estimated to be 400-800MMbbl. With these numbers, it is no surprise that companies that include Talos Energy and Premier Oil are working on an appraisal for drilling. Premier Oil currently already has some interest in offshore drilling projects and partners of Premier Oil are considering which interests are the most feasible so that they can make the decision as to which project should be drilled on first.
With oil prices low and competition high, the offshore energy exploration market is a tight market. Companies that are in the the energy exploration market, must remain competitive in order to continue to be able to drill to make the revenue that is needed to in order to keep their company afloat. There are so many energy companies in the current market, that if one company fails at willing an appraisal bid, getting a second chance at bidding is no longer a guarantee. There are plenty of companies in the market now that are waiting to swoop in on new drilling opportunities.