Talos Energy Incorporated and Stone Energy entered into a merger worth 2.5 billion dollars to combine into one single corporate unit. Ultimately the two companies decided to keep the Talos Energy name due to Stone’s bankruptcy status as of 2016. Both parties brought assets to the table: Stone brought with them 136 million barrels of oil, and Talos came to the table with an excess of cash. On top of this, Stone was already listed on the New York Stock Exchange and so this allowed tell us to essentially become listed on the stock market for free.
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
Talos decided to go through with the deal because together they are able to produce 47,000 barrels of oil per day and have a combined nautical space that is 1.2 million miles of potentially drillable wells off the coast of Louisiana and Texas ( ten percent is in the Gulf of Mexico). The Chief Executive Officer of Talos Energy is Tim Duncan, and he has history in the past with turning around struggling oil companies. For example, Hurricane Rita hit in the year 2005 and damaged many drilling capacities for Phoenix and Cabot Oil; Tim was able to turn everything around and come back in the black once again. Tim is no stranger to success, either. Before Talos he was able to secure the Zama-1 well by partnering with British forces and it is now a long-lasting well that is expected to produce two billion barrels, starting in the next five years.
With almost half a million dollars in cash equivalents on top of a series of positive drilling’s in the works, Talos (TALO, NYSE) is poised for success. The first sign of success for the newly merged company was when they drilled Mount Providence in January of 2018 and are expected to start producing oil by September of 2018 from this area alone. On top of that, “Tornado well number 3” is also on track to produce starting in the first quarter of 2019.
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