Talos Energy Incorporated has entered into a 2.5 billion dollar merger with Stone Energy after Stone filed for bankruptcy in 2016. The transaction was mutual for both parties for many reasons: Stone had assets which it could contribute in exchange for the guidance and cash that Talos already had. On top of this, Stone was already a publicly listed company and Talos Energy wood get the benefit of not having to pay for any listing fees, in a sort of free (and smart) backdoor method of becoming listed on a stock market. The new company will be named Talos energy, and will be tradable under the ticker symbol TALO.
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
Stone brings 136 million barrels of oil reserves to the table, and Talos brings $150,000 in cash assets, as well as a CEO who has a track record of successfully turning around struggling oil companies. The 2005 Hurricane Rita destroyed much of the drilling rigs of oil back when Talos CEO Tim Duncan worked at Cabot. Tim has also successfully established a new well from the Mexican “Zama-1” field and it has proven extremely efficient over the years.
With this new merger also comes and ability to jointly produce 47,000 barrels of oil every day, in addition to over a million seafloor acres of drillable space to explore. And already, things have been on the up-and-up for the merge company. They have tapped the well at Mount Providence and it will begin yielding oil in September of 2018. Additionally, tornado well number three is just starting to become trapped and will be ready for export in Q1 2019.
“Talos is very well positioned to capitalize on its high-quality asset portfolio and returns focused capital programs in the U.S. Gulf of Mexico and offshore Mexico, as well as take advantage of potential business development opportunities,” said CEO Tim Duncan of the merger.
Learn More: www.indeed.com/cmp/Talos-Energy