In developing its 2023 financial plan, Talos incorporated the following considerations in developing its 2023 plan:

• Average daily production rates and total Upstream capital expenditures for 2023 have been focused on success-based capital expenditures that will add material production over the next 12 to 18 months, with a material impact expected in 2024 from our recent Lime Rock and Venice successes.
• Talos elected to remove the gas-weighted Lisbon prospect from its 2023 drilling calendar despite its near-term potential production rate of approximately 8-10 MBoe/d and will preserve the opportunity for a subsequent rig program.
• The closing date of the EnVen acquisition was February 13, 2023, therefore the transaction is contributing approximately 10.5 months of financial performance compared to an expected full year at the announcement of the acquisition in 2022.

Key 2023 Projects

Bulleit Recompletion: Operations on the Bulleit DTR-10 Sand recompletion recommenced in February 2023 following a successful fracture stimulation, including the running of an additional casing liner due to loop currents experienced in late 2022. First production from the recompletion is expected in the first quarter of 2023.

Rigolets: Talos will drill the Rigolets prospect in the second quarter of 2023. If successful, Rigolets would flow via subsea tieback to the Company's Pompano platform with production achievable in the second half of 2024. Talos expects gross production rates of approximately 8 to 12 MBoe/d from gross recoverable resources of 15-30 MMBoe. Talos holds a 60% working interest.

Sunspear: Talos expects to drill the Sunspear prospect in late 2023, which is a contribution from the EnVen portfolio. Talos expects gross production rates of approximately 8 to 10 MBoe/d from gross recoverable resources of 12-18 MMBoe. If successful, the project would flow to the recently acquired and EnVen operated Prince platform. Talos holds a 48% working interest.

Pancheron: Talos expects to participate in the potentially high impact Pancheron exploration prospect in the first half of 2023 following the completion of an eight block swap in the Green Canyon and Walker Ridge area in 2022. Talos holds a 30% working interest.

Zama Final Investment Decision ("FID"): Talos is continuing to collaborate with partners to finalize the Zama Field Development Plan ("FDP"). The partnership is targeting the submission of the FDP to the regulator by the March 23, 2023 deadline. The partners are advancing engineering design and other workstreams in anticipation of approval in the coming months, after which the parties will then be able to move toward FID. Upon FID, Talos anticipates adding a portion of the Zama contingent resources into Proved reserves.

CCS Investments: Talos expects to grow and advance its existing project portfolio with strategic business development activities, the advancement of engineering and design work and preparation for filing multiple Class VI permit applications, including drilling multiple stratigraphic evaluation wells.

2022 Year-end Reseves

As of December 31, 2022 including assets acquired from EnVen, Talos had proved reserves of 190.0 MMBoe, comprised of 70% oil and 77% liquids. The PV-10 of proved reserves was approximately $7.2 billion. Talos's reserves are prepared by Talos management and audited by Netherland Sewell & Associates ("NSAI"), whereas EnVen's reserves are fully engineered by NSAI. 

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