Talos Energy Merges with Stone

Talos Energy and Stone Energy Corp have completed their merger, forming a Gulf of Mexico colossus in the energy sector. The merger was announced previously and widely expected to run smoothly, which seems to have happened. The assets and capital of both companies have been merged, shareholders have their stocks in order and a new Board of Directors is being chosen from the previous Boards of both companies. Talos Energy CEO Timothy Duncan will remain CEO of the new company, called Talos Energy, Inc. The new company is based out of Houston and is being traded on the New York Stock Exchange under the name “TALO.”

With the increased access to operating capital and scale of production, Talos Energy, Inc. is poised to become a juggernaut in Gulf of Mexico drilling. Already a sizable force in the industry, Talos and Stone combined increase both onshore acreage owned and offshore production capability for the newly merged Talos Energy, Inc.

Talos now has over 1.2 million acres of land to explore and drill, with over 160,000 acres in Mexico in offshore assets. This combined production capacity should result in an expected 47,000 barrels of crude a day. This is roughly $2.28 billion is assets for the new company.

With both companies’ boards approving the merger, and the stockholders approving it as well, there were few hurdles toward formation of the newly merged company. Talos shareholders will end up owning roughly 63% of the company, with Stone shareholders owning the remaining 37%. Both companies had been growing on their own and the merged company is expected to follow suit, according to press releases.

The company plans to capitalize on the Zama discovery offshore in Mexican waters, waters that only recently were opened up fr private drilling. It is a large field, one of the largest found in 20 years in the Gulf region. With their new access to assets and funding, Talos plans to continue with more exploratory drilling for other fields while also developing Zama. Their merger with Stone gives them the diversity and manpower to pursue multiple projects of this scale.

Follow Talos on Facebook : https://www.facebook.com/talos.energy/

You Might Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *