Talos Energy Inc. announced an update on the Zama appraisal in Block 7 offshore Mexico. The company is the operator of Block 7 in a consortium (the "Consortium") with its partners Sierra Oil and Gas S. de R.L. de C.V. and Premier Oil Plc. The Zama-2 appraisal well is the first of three appraisal penetrations drilled by the Consortium to better define the resource potential of the Zama discovery. The Zama-2 appraisal penetration was drilled in a down-dip location approximately 1.3 miles (2.1 kilometers) to the north of the Zama-1 discovery well in an effort to confirm the geological model and define the oil-water contact. This initial phase of the appraisal program was successfully and safely completed on January 20, 2019, approximately 28 days ahead of schedule and 25% below initially projected costs. The well reached the top of the Zama reservoir at approximately 10,759 feet (3,279 meters) of true vertical depth ("TVD") and has encountered the following: A contiguous Zama sandstone interval of 1,676 feet (511 meters) of gross TVD sand, materially thicker sand than the Zama-1 discovery well and slightly thicker than the pre-drill estimates for the Zama-2 well. The well also encountered several other thick, wet sands of similar age directly beneath the main Zama horizon for an aggregate total of approximately 2,350 feet (716 meters) TVD of high quality Upper Miocene sands with rock properties similar to analogous Upper Miocene sands in the US Gulf of Mexico; The Zama-2 penetration logged approximately 581 feet (177 meters) of gross TVD oil pay before reaching the oil-water contact, preliminarily estimated at 11,254 feet (3,430 meters) TVD, approximately 100 feet (30 meters), deeper than the anticipated depth of the oil-water contact based on the geophysical signature called a "flat-spot." The preliminary Net-to-Gross factor in this pay interval ranges from 68-73%, with rock properties in line with those at the Zama-1 location; Preliminary pressure data helped confirm the oil-water contact depth, complementing the traditional logging results. The pressure data also indicates that this northern section of the reservoir is connected to the Zama-1 discovery well. The Zama-2 vertical sidetrack and the Zama-3 well will provide additional information about the reservoir connectivity and consistency.