Talos and Stone Merger
Talos Energy, an offshore oil and gas producer out of Houston has just merged with Louisiana Stone’s Energy from Louisiana. the merger leaves Talos Energy with 63 percent while Stone Energy retains 37 percent of the merged company. The newly merged company has a value of $2B.
Talos Goes Public
Talos will continue to pursue offshore drilling sites along the Gulf of Mexico both inside of the continental waters and in Mexico. Its recent acquiring of the controlling shares of Stone Energy has made it possible to now operate as a public company after acquiring Stone’s majority shares. Talos Energy will operate on the NYSE with the symbol TALO.
Timothy Duncan Speaks
The President and Chief Executive Officer of Talos, Timothy Duncan told reporters he felt Talos was well positioned now with its freshly acquired high-quality asset. Also, its future opportunities in the Gulf of Mexico and directly in offshore Mexico are now enhanced and looks forward to the “potential business” and “greater development opportunities” that can arise thru this merger.
On July 2017 Talos struck it big when while it was drilling in Block 7 of the Sureste Basin offshore Mexico with its Ensco 8503 floating drilling rig and hit an oil deposit which has been estimated to contain between 1.5 to 2.0B oils of crude oil. Zama is located at 165m depth, which makes it relatively easy to drill. The U.S. Geological Survey of 2012 has estimate roughly 19 Billion barrels of oil within 10 regions along Mexico, Guatemala, and Belize.
Mexican Amended Constitution
The Zama discovery came within a year of Mexico amending its constitution allowing both local and international private investment companies to enter the area to drill for oil. Companies that were interested had to align themselves with the new requirements. Talos won some of the first offshore bids and working with partners Sierra Oil and Gas (Mexico) and Premier Oil (Mexico). Talos retains 35%, Sierra Oil & Gas 40%, and Premier Oil 25% of the reserve, since they were working in partnership in Block 7 of the Sureste Basin.
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