Independent energy company Talos Energy has reported a significant discovery at the Daenerys exploration prospect in blocks 106, 107, 150 and 151 of the Walker Ridge in the US Gulf of Mexico.

The well, which was drilled to a total vertical depth of 33,228ft using the West Vela deep-water drilling vessel, encountered oil in several quality sub-salt Miocene sand layers.

This discovery was achieved around 12 days ahead of schedule and under budget by around $16m.

Plans are now in place for an appraisal well to define the discovered resource further, with the discovery well being suspended temporarily.

This successful drilling operation at the Daenerys prospect has confirmed the presence of hydrocarbons, supporting Talos Energy's pre-drill resource assumptions.

The company, as the operator, holds a 27% working interest, with partners Shell Offshore, Red Willow, Houston Energy, Cathexis and HEQ II Daenerys holding various interests.

During the drilling operation, a comprehensive wireline programme was implemented to gather core samples, fluid information and logging data for the purpose of assessing the reservoir.

The discovery adds to Talos Energy's previous successful explorations, following the discovery of oil and natural gas at the Katmai West #2 well earlier this year, and a significant underwater oil and natural gas find in the Gulf of Mexico last September.

Talos Energy president and CEO Paul Goodfellow said: "We are encouraged by the results of our Daenerys discovery well, which confirms the presence of hydrocarbons and validates our geologic and geophysical models. We believe these results support Talos's pre-drill resource assumptions.

“We are now working closely with our partners to design an appraisal programme that will further delineate this exciting discovery. We anticipate spudding the appraisal well in the second quarter of 2026."