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Talos Energy A Leading Oil And Gas Exploration Company

Talos Energy Inc. is a technology driven private for-profit oil and gas exploration and Production Company that was founded on Jan 1, 2012. The company is headquartered in Houston Texas and has operations in the US Gulf of Mexico and the coast of Mexico. Talos energy boasts of a highly experienced management team with decades of experience in oil and gas offshore exploration and production. Talos energy as part of their strategy aims at fully acquiring and exploiting the Gulf of Mexico and Gulf coast by capitalizing on the firm’s deep geological, geophysical and operating experience. Talos is more focused on innovation in production and exploration sector with the goal of recovering valuable resources that were considered unreachable.

Talos Energy has made a lot of accomplishment in the oil and gas industry. One significant achievement the company has made recently is the acquisition of Whistler Energy II. Talos entered into an acquisition deal with Whistler Energy II, LLC on August 31, 2018. Whistlers total gross production year to date stood at about 1,900 barrels of oil equivalent per day, and a net of around 1500 barrels most of which is oil which accounts for approximately 82%. The acquisition deal was worth 52 million dollars. As part of the agreement, Talos negotiated the release of around 77 million dollars cash that was held as collateral for Whistler surety bonds. Talos from the collateral received a total of 31 million dollars, and Whistler bagged the rest 46 million dollars. Besides the Collateral cash, Talos was also to benefit from the cash balance at Whistler’s account by close of business which stood at 7 million dollars. The deal was a win-win situation for both Talos and Whistler as at the end of the day Talos acquired Whistler at 14 million dollars down from 52 million dollars and Whistler ended up with approximately 100 million dollars, 48 million dollars on top of the original 52 million dollars.

Another milestone achievement for Talos Energy was the recent merger with Stone Energy Corporation. The 2 billion dollars merger will see Talos energy stakeholders owning 63% of the combined company while Stone Energy Shareholders will hold the rest 37%. In a statement, Talos energy CEO Tim Duncan said the merger was significant to the shareholders as they will benefit from increased scale and liquidity.

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Talos Energy Progress In The Oil And Gas Industry.

Talos Energy is a bold oil company that has been known to take great risks despite the challenges the industry faces. Tim Duncan who founded the company in 2012 has led Talos to success with his determination to conduct mergers and acquisitions.

Duncan’s journey to the energy industry can be traced back to his father, who was also in the industry. However, it is in 1996 that Tim Duncan made his entry into the industry under the Zilkha Energy Company. Later in 1997, the company changed ownership for $1.2 billion. Duncan never gave up on the industry. He participated in the launch of Gryphon Exploration in 2000, and in 2006 he became a cofounder to the Phoenix Exploration company. Both companies were a success. Woodside Petroleum acquired Gryphon and Phoenix Exploration was sold to Apache Corp. in 2011.

Apollo and River stone played a vital role in the establishment of Talos in 2012 through a $600 million equity funding. A year later, Talos Energy acquired the Phoenix Field for $620 million. This would prove a hard bargain as the market crashed. This did not affect Talos Energy as it continued fighting these challenges.

Amid Hurricane Harvey, Duncan who is now Talos chief executive was involved in a $2.5 billion merger with Stone energy. Stone Energy Company faced bankruptcy, and this was risky for Talos as it would trade without public offering expenses. The $900 million annual revenue from Stone energy and the 48000 barriers it can produce daily will be part of Talos assets.

Talos Energy has taken over the Gulf of Mexico by being the first private company to be part of oil drilling in Mexico. The company has partnered with Mexico’s Sierra oil and Gas together with Premier Oil Plc. London. These companies are actively invested in the Zama-1 well which records up to 500 million barrels.

Talos Energy has continued to explore, develop and produce oil and natural gas. Currently, its operations are at the Gulf of Mexico and the gulf coast. The company went public late 2017 and has since raised some money for further development. Tim Duncan and his team are taking Talos Company beyond the borders, and its development is on the spotlight especially with the risky measures they undertake.

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