Talos Energy recently grabbed the headlines after finalizing a lucrative agreement to purchase Whistler Energy 2, LLC. With such an acquisition, the prominent oil company intends on harnessing the production of 1,900 barrels of oil widely believed to be a substantial improvement from the initial 1,500 barrels a day.
At $52 million, Talos Energy had successfully presented an initial purchase offer with a subsequent $77 million wrapped up in collateral that had fortified Whistler Energy’s bonds. Through the transaction, the oil juggernaut recouped $31 million with the former company entitled to the residual $46 million. More importantly, Talos Energy showcased its impressive sales skills by making adequate use of the $7 million disbursed during the time of purchase.
According to seasoned analysts from either side, the transaction represents a substantial triumph through which the seller reaped an astronomical $100 million in cash while Talos Energy’s net payment at $14 million represented an estimated $9,333 per net. Through the transaction, the prominent oil company was in a unique position to earn significant revenue from three oil blocks in the Central Gulf of Mexico-the Ewing Bank 988, Green Canyon 60 and the Green Canyon 18. All leases are obtained by production.
Initially developed by ExxonMobil and subsequently purchased by Whistler in 2012, the Green Canyon 18 field consists of the cumulative production of over 117 million barrels of oil. Alternatively, the facility operating an estimated 18 miles in the outskirts of Talos attributes its stellar production to the Tornado and Phoenix Field discovery. With over thirty thousand barrels of oil in production per day, the oil block has proven to be a resourceful asset to its subsidiary company.
According to the oil company’s Chief Executive Officer, Timothy Duncan, the latest acquisition speaks volumes about the oil magnet’s unwavering commitment to purchasing crucial assets in core sectors such as hydrocarbon prolific inclusion, unused production facilities, and low entry costs.
As a testament to its financial strength, the company also purchased Stone Energy as part of its ambitious expansion program. Headquartered in Houston, Talos Energy aims at optimizing its high-quality asset portfolio and capital programs in the Gulf of Mexico. Such diversity resonates with the company’s mission to promote business development opportunities.
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