Talos Energy to Merge with Stone Energy in $2.5 Billion Deal
[Click image to enlarge]
[Click image to enlarge]
Talos Energy has agreed to acquire Stone Energy in an all-stock transaction to create a $2.5bn worth combined offshore-focused exploration and production company.
Both Talos and Stone are US-based oil and gas companies with focus on the Gulf of Mexico.
Their combination will have estimated 2017 average daily production of nearly 47Mboe and proved reserves of 136MMboe as of 30 June, 2017, of which 69 percent is oil.
According to the two companies, 74 percent of their combined reserves are located in the Deepwater Gulf of Mexico.
The combined company, which will take the name Talos Energy, will be owned 63 percent by Talos shareholders and 37 percent by Stone shareholders. Talos Energy will have its headquarters in Houston, Texas and maintain additional offices located in Lafayette and New Orleans.
Stone Interim CEO and President James M. Trimble said: “The team’s management of Stone’s assets and business in a safe and environmentally responsible manner will continue our success for the combined shareholder base.
“The combined company will be strategically positioned to drive meaningful production growth through complementary acreage positions.”
Talos Energy will have more than 1.2 million combined gross acres in the Gulf of Mexico, out of which nearly 160,000 acres is located offshore Mexico.
The assets of the combined entity will include the Talos-operated Zama oil discovery, which is estimated to hold 1.4-2.0 billion gross barrels of oil. Talos has a stake of 35 percent in the offshore Mexican field where it is partnered by Sierra and Premier which hold stakes of 40 percent and 25 percent respectively.
Talos CEO Timothy S. Duncan said: “We will have two core areas in the Deepwater U.S. Gulf of Mexico Deepwater and the outstanding new Zama discovery located in the shallow waters of offshore Mexico.
“The combined talent, technical resources and balance sheet of the resulting company will allow us to accelerate development of our own robust project inventory while also giving us the horsepower to pursue compelling transactional and exploration opportunities.”
The merger deal is anticipated to be completed in late first quarter or early in the second quarter of 2018, subject to certain regulatory approvals and other customary conditions.
Source: Energy Business Review
To stop by Talos Energy’s website, CLICK HERE
To stop by Stone Energy’s website, CLICK HERE
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
