Tornado (GC 280)

Tornado (GC 280) is an oil discovery in the Green Canyon protraction area of the Central Gulf of Mexico. The field was discovered by Talos Energy (50% and operator) in February 2016 and developed as a tieback to the Phoenix Floating Production Unit (FPU) located approximately 4.5 kilometres (2.8 miles) north of the field. Production from Tornado began in November 2016. Tornado was sanctioned in February 2016 during a period of depressed commodity prices, speaking to the positive economics and low breakevens of subsea tie-backs in mature plays. We currently estimate the field has a point forward development breakeven of Brent US$13.19/bbl. We believe that the short cycle time and reduced cost structure is driven by integration of exploration, appraisal and development, utilisation of standardised equipment, connection to existing infrastructure via subsea tie-back, and completion of the exploration well for production. We currently model a field life of 14 years based on the ...