Talos Energy Inc. plans to drill two exploration wells, two delineation wells, and one appraisal well this year in shallow waters off the coast of southeastern Mexico, CEO Timothy Duncan said last week.

The oil and natural gas exploration wells will target the Acan prospect via offshore block 2, which Mexico’s Comisión Nacional de Hidrocarburos (CNH) awarded to a Talos-led consortium in Mexico’s inaugural round 1.1 bidding tender in 2015.

The delineation wells will target the Olmeca prospect at nearby block 31, which is operated by Hokchi Energy, S.A. de C.V., a subsidiary of Pan American Energy LLC.

Talos and Hokchi announced an agreement last October under which Talos acquired a 25% participating interest in block 31 and Hokchi obtained a 25% stake in block 2. Through the agreement, the companies aim to pool their resources and knowledge, in order to expedite the development of each project.

Hokchi won a production sharing contract for block 31, a former asset of Mexican national oil company Petróleos Mexicanos (Pemex), through CNH’s round 3.1 tender in June 2018.