According to reports in June 2018, Sierra Oil & Gas has tapped Scotia Waterous to handle its farm-out in the Talos Energy-operated Area 2 (CNH-R01-L01-A2/2015). Sources in late May 2018 confirmed that WI is available in the tract, with Sierra offering part of its 45% WI. Talos, which operates the block, is not expected to offer any of its WI. The entrance of a new partner into the block would come at a time when plans are in the works to drill in the contract area. Possible objectives could include the Pliocene sequence at a depth of 2,780m. The blocks is located in the prolific Sureste Basin, and contains Tertiary clastic plays, typical of the Salinas sub-basin. In the joint venture, Talos operates with 45% WI, Sierra holds 45% WI and Premier holds 10% WI. Premier has an option to increase to 25% from 10% WI. Talos and partners won the block at Round 1. Mexico offered 14 shallow water exploration tracts in the first phase of the round. Pemex drilled the Luhua 1 in the area in 2002.
According to reports in June 2018, Sierra Oil & Gas has tapped Scotia Waterous to handle its farm-out in the Talos Energy-operated Area 2 (CNH-R01-L01-A2/2015). 