Talos Energy Got Into A Deal To Purchase Whistler Energy

Talos Energy is a gas and oil company. It is led by a team having more than ten years of experience in offshore production and exploration. The company has developed expertise in acquiring developed deep-water assets and operated shelf in the Gulf of Mexico. It explores and optimizes assets using cutting-edge technologies and innovative techniques. The team has a good history of producing positive results. Before beginning Talos, the founders had built and sold oil and gas Gulf in Mexico. These are Gryphon Exploration and Phoenix Exploration Co. Each of this company delivers a lot of returns to the investors.

Talos Energy got into a deal to purchase Whistler Energy on 4 September 2018. The oil production per day by Whistler is approximated to be about 1,900 barrels. The net royalties produced is about 1,500 Boepd. About 82% of this royalties is oil. The price of the purchase was set at $52 million. Talos negotiated a release of $77 million in cash collateral that secured Whistler’s surety. Talos, therefore, paid a total of $31 million with the seller being entitled to the remaining amount. Talos Energy benefited from the available balance at Whistler which was about $7 million. This resulted in a net cash consideration of $14 million.

The transaction represented a win-win situation for both companies. Whistler received about $100 million. Talos paid only $14 million in cash which represented $9,333 net Boepd in metric acquisition. The assets that were acquired include a full working interest in Ewing Bank 988, Green Canyon 60 and Green Canyon 18. The three Gulf together comprises of about 16,494 acres. The Green Canyon 18 Field was however developed by ExxonMobil and the sold to Whistler. It has cumulatively produced more than 117 million barrels of oil to date. It also operated the Tornado discovery and Phoenix field.

The benefit of acquiring Whistler is beyond the production leases. Talos had already taken an initiative in the area to license vintage azimuth seismic data. This will assist in generating potential drilling prospects and re-mapping of reservoirs. The company was the highest bidder in the latest federal lease sale. The lease had three drilling prospects that could be linked to the Green Canyon facility.

Talos Energy Is A Small Fish In A Big Pond.

In the equation of the Worldwide economy, Talos Energy is merely one of an infinite number of variables. Unlike applied mathematics, this equation cannot be solved or even practically understood by either humans or computers. Humans don’t have access to all of these variables because conditions constantly change. Therefore, without the clear data to input, a computer program can do little more than approximate an eventuality.

For most of its first century, oil production was a volatile but reliable predictor of economic influence worldwide. This fact is primarily because OPEC controlled the majority of crude oil production, therefore, its availability worldwide. Certainly, this resulted in a global monopoly that no outside force had the power to overcome. Untold billions of dollars have been spent and countless lives lost in a vain attempt to merely exist with this situation. Then you begin to encounter the variables of increased crude oil availability.

Throughout the 20th century, oil production technology remained for the most part unchanged. With limited easily accessible resources, the America’s oil production capabilities dwindled. However, when science caught up to the 21st century, the picture began to blur and quickly change. Crude oil resources that were once too costly to access suddenly became economically viable. Indeed, one cannot simply name one factor as the tipping point, however, this element of the equation was at least an important catalyst.

It has long been said that nothing happens in a vacuum, in this case, no adage could be more accurate. Regardless of what many may think, money is not a finite commodity. Control of a necessary commodity directly translates to control of the resulting financial windfall. This concept is easily understood in a small, local infrastructure. However, taking this idea worldwide and factoring in the financial gains, losses, assets, and needs of a vast population the once easy concept becomes an insurmountable equation.

The control of crude oil is but one factor. At present, the world is experiencing the flux of change. The winners and losers will be decided in the decades to come. Talos Energy will be an element of this change, at least this time.

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