Coming somewhat on the heels of the $2.5 billion merger with Stone Energy Corp., Talos Energy has now acquired Whistler Energy II in a $52 million deal. The acquisition grants the company a 100% working interest in three blocks in central Gulf of Mexico.
The blocks in question include Green Canyon 18, Green Canyon 60, and Ewing Bank 988. In addition, the growing company will get a fixed production platform in 750 feet of water located in Green Canyon block 18. To date this year, production from whistlers assets has been approximately 1,900 barrels of oil equivalent per day, or boe/d.
While the purchase price was listed as, $52 million, the release of $77 million cash collateral, which had secured Whistler surety bonds, along with the $7 million dollars in available cash that was on hand at the time of sale, led to a net positive cash flow for both parties. Whistler pulled in $100 million in cash, and Talos Energy ended up paying only $14 million, despite the price tag which on paper for acquisition of the company.
In addition , Talos Energy had also recently licensed vintage wide azimuth seismic data in the Gulf of Mexico. This will be used in conjunction with the assets that they aquired in the merger to possibly generate some additional drilling prospects in the area. The company also won the bidding on new leases containing three drilling prospects which can be routed back through the Green Canyon 18 Field Block.
Talos Energy was started in 2012 in part by Tim Duncan. Using 600 million in equity they had accrued from previous backers, as well as assets in Gulf of Mexico which we’re producing over 16,000 barrels of oil per day, they built a company which prided itself an intervention and the empowerment of employees.
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