Talos Energy has announced the acquisition of Whistler Energy II, otherwise known as “Whistler”. The deal was completed on August 31st, 2018 to the tune of $52 million. Because of a financial balancing act with cash collateral from whistler surety bonds, as well as Talos Energy receiving the available cash on hand from Whistler at the time of the sale, Talos actually came out with a $14 million net cash consideration. It wasn’t only a good deal for Talos: the release of the surety bonds go with the purchase price of the netting Whistler $100 million in cash.
Talos Energy acquired 100% working interest in three blocks of the central Gulf of Mexico comprising 16,494 for acres, as well as a fixed production platform. The area acquired consists of three blocks in the central GoM which as a group is titled the “Green Canyon 18 Field” (Green Canyon 18, Ewing Bank 988, and Green Canyon 60). Exxon Mobil originally developed Green Canyon 18 field before selling it off to whistler in 2012, and is responsible for over 117 million barrels of oil equivilant produced to date. To date this year Whistler had produced approximately 1,500 barrels of oil equivalent per day (boe/d).
Talos Energy President and CEO Timothy S. Duncan indicated that plans were in place pour over the assets of Whistler and find new opportunities for drilling in the Gulf of Mexico. This will be in conjunction with leases gained from a federal lease sale in the area which contained at least three drilling possibilities which can possibly be tied into the production facilities acquired in the sale.
The move comes as many competing companies are leaving the Gulf of Mexico to look for onshore drilling opportunities. This acquisition comes mere months after Talus Energy acquired the Houston-based Stone Energy Corporation which was another offshore drilling company in the Gulf of Mexico.
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