Talos Energy is a natural gas and oil production company based in America. The company is an independent technically driven production and exploration organization whose focus is to acquire, explore, exploit, and construct deep and shallow water assets near current infrastructure. The company just completed its deal to take over Whistler Energy. The transaction cost Talos Energy $52 million. The company paid $100 million in cash.
The company’s CEO and president Timothy Duncan said that they are excited about the deal as it displays what the company looks for when buying producing assets in its central areas: production plants possessing the unused capacity, low-entry costs, and new seismic in an established hydrocarbon prolific location.
This is a placeholder account for Talos Energy LLC in Houston, Texas. Questions about the company should be directed to 713-328-3000.
— talosenergy (@talosenergyllc) February 12, 2013
Timothy went ahead to say that the company will immediately conduct a field study that will result in identifying extra drilling places on the new asset to add on to its broader portfolio in the location. This will provide Talos Energy with options on how to distribute capital.
The assets acquired include a 100% working interest within the three blocks in Mexico’s Central Gulf, Green Canyon 18, Ewing Bank 988, and Green Canyon 60, including a production platform that is fixed on Green Canyon 18. The Central Gulf of Mexico which is commonly known as Green Canyon 18 has 16,494 acres with production holding all the leases.
The Whistler Energy bought the Green Canyon 18 in 2012 after Exxen Mobil developed it. The Green Canyon 18 can produce an accumulative of 117 million oil barrels. The production facility is near to the Tornado discovery and Phoenix Field which are operated by Talos Energy.
The strategic benefit for Talos from this deal is more than the current producing leases. The company was the highest bidder on most contracts including three drilling projections in the recent federal lease in the Gulf of Mexico.