The commencement of Talos Energu

Recently, in May Talos Energy Inc. and the Stone Energy Corporation merged to form “Talos Energy”. The two oil and gas companies have a history of instinctive strategic development and asset management procedures. Stone, having filed for bankruptcy in 2016 welcomed the merger allowing Talos Energy to go public without the associated costs involved in making an initial public offer to the market. Tim Duncan, the current CEO of the newly formed Talos Energy and former Talos Energy Inc. CEO said that this merger would benefit shareholders due to their increased scale and liquidity. He further appreciated the efforts of everyone involved in sealing the $2.5 billion-dollar deal in which he took four months to seal.

As the oil and gas industry rebounds from the 2015 collapse of oil, recent developments have made the price of oil to increase to over $ 60 dollars for a gallon of oil. The merger will see Talos Energy boost production to a capacity of 47000 barrels. Talos Energy will also have proved reserves of 136 million barrels of oil equivalents. The newly Merge company will also maintain a 1.2 combined gross acres in the Gulf of Mexico, not including roughly 160,000 acres off the coast of Mexico.

Talos Energy also announced a new credit facility it had entered into with an initial borrowing base of $ 600 million dollars, with $300 million available. The newly formed company has a liquidity of $450 million dollars, out of which $150 million is in cash, net of transaction related costs. Talos Energy also pranced about their Pro forma Year-End reserves at SEC of approximately 205 MMBoe, out of which 150 MMBoe were proved reserves thereby increasing its financial flexibility.

Talos Energy also released its financial and operating guidance for the year 2018 with Tim Duncan announcing its release and what it meant for Talos Energy together with its particulars. Tim Duncan stands on the help of successfully turned around assets and companies. In 2005, he spearheaded the acquisition of the Phoenix field which is now Talos’ largest asset. Another one of Tim Duncan’s great scores was the discovery of Zama -1, which proved to be a success after Talos teamed with Premier Oil to drill a 1000-foot indicator well.

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