In a deal that created one of the largest energy providers in the Gulf of Mexico, Talos Energy and Stone Energy merged together as a publicly traded company in May 2018.
Talos Energy, the offshore oil and gas producer based in Houston, TX, acquired the ailing Stone Energy Corporation based in Lafayette, LA. The nearly $2 billion merger was finalized this past quarter after months of negotiations.
The focus of the merged company places Talos Energy at the forefront of the booming offshore drilling market taking place in the Gulf of Mexico. Capitalizing on new energy laws that allow for foreign oil and gas investors in Mexico, Talos Energy has plans to expand operations, especially after the company’s Zama Oil Deposit discovery last year.
The Zama discovery uncovered between 1.4 and two billion barrels of oil and is located in the Sureste Basin in Mexico. A Zama-1 well discovered the field in July 2017. The discovery is the first major one since the country began its deregulation process and an optimistic start for Talos Energy.
Currently, Talos Energy is the operator overseeing the Zama Oil discovery project, as the area requires more research and development. The full extent of the discovery is preliminary and the developers are working on ways to learn more about the site.
As both Talos Energy and Stone Energy merge, Talos Chief Executive Officer Timothy Duncan will retain his position with the company. While the new company headquarters will move to Houston, satellite offices will be located in both Lafayette and New Orleans, respectively.
Another major change for the company will be it’s public trading on the New York Stock Exchange. When Talos Energy was founded initially, it did so with financial backing from Apollo Global Management and Riverstone Holdings, two private equity firms. The plan was to make an initial public offering in 2014 or 2015, but the flailing oil market made the move too risky.
But now with the acquisition of Stone Energy, Talos Energy began trading publicly under the “TALO ” ticker late last month.
With this new move, Talos Energy is positioned to be a leader in offshore oil and gas production in the Gulf region.
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