Talos Energy Aims To Expand Their Presence In The Gulf of Mexico

Talos Energy, based in Houston, Texas, is a highly successful oil and gas company founded in 2012. Before their debut, the team at Talos Energy accomplished the great feat of building and transferring two separate oil and gas corporations.

More recently, Talos Energy took on the challenge of acquiring a failing establishment known as Stone Energy. The two combined officially in May of 2018 which created the New York stock exchange ticker, TALO, to represent the new merger.

CEO of Talos Energy, Tim Duncan, worked diligently through the devastating effects of Hurricane Harvey to close the merger with Stone, even though the company was bankrupt and failing. Though a move like this might seem like a daunting task to many, the effectiveness of the staff at Talos gave Duncan the confidence to close the deal.

Another factor that stockholders can take into account is the low-risk outcome of this merge. Though Stone Energy was bankrupt, they are only coming to Talos with a $700 million debt to $2.3 billion asset ratio.

The team at Talos Energy is always looking for ways to expand their presence in the Gulf of Mexico. Although they made some significant progress with this as they acquired Stone Energy, they pressed on to amplify their existence in the Gulf.

They succeeded in doing just that at the recent federal lease sale of blocks of acreage in the Gulf of Mexico. Many competitors were vying for the same 14 plots that were put up for sale. However, Talos Energy secured all of the available locations with their pledge of $5.3 million.

Their successful bid landed them a total of 75,000 net acres in the Gulf of Mexico, eight of which are shallow water locations, and the other six in deep water. Where other substantial companies play it safe with onshore drilling, Talos Energy would much sooner reap the benefits of drilling for larger quantities in the Gulf, no matter the possibility of failure.

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