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.