Talos Energy has been on an exciting and adventurous path recently. The company, based in Houston, Texas, began the summer with the acquisition of Stone Energy, a publicly traded company that filed for bankruptcy. The acquisition was risky due to Stone Energy being the same size as Talos Energy, but it would allow Talos to become a public entity without the trouble of a public offering. Today, Talos Energy Inc. (NYSE: TALO) is publicly trading and working towards more expanse in their business. Recently, they announced that they were listed as one of the top five bidders for a lease in the Gulf of Mexico that was previously held by Bureau of Ocean Energy Management (BOEM).
Following the news of their bidding status, Talos Energy announced that it was the top bidder and won the final sale of six deepwater blocks and eight shallow water blocks in the Gulf of Mexico. These blocks cover roughly 75,000 acres and will cost Talos Energy roughly $5.3 million. Twelve of the leases will have a five year lease while two will have a seven year lease. The company was excited to announce the purchase due to their efforts to expand both their inventory and production facilities, these leases will certainly aid in those goals. More details on these leases and the goals associated with them can be found here.
Just two months after Talos Energy announced the lease of those fourteen blocks, the company announced a preliminary agreement with Pemex, out of Mexico, which will decide weather or not the oil discovery Talos Energy made in the Gulf of Mexico also reaches into the blocks around them which are owned by Pemex. If this agreement holds, it will cover some of the shallow water areas in the Gulf of Mexico and will be the first time Pemex has made any deals of this nature. Just last year, in the same shallow water area, a well was drilled that led to the discovery of a deposit that is believed to hold somewhere between 1.2 and 1.8 billion barrels of oil. While this deal is not finalized yet, it is under review by Mexico’s incoming government, it is an exciting prospect for Talos Energy. More information on this deal and what it could mean can be found here.
Learn more about Talos Energy : https://www.ogj.com/articles/2017/11/gulf-of-mexico-producers-to-become-talos-energy-inc.html