In a $2.5 Billion merger, Talos Energy Incorporated and Stone Energy merged into one corporate entity. The new name of the company is called Talos Energy, and in 2016 Stone filed for bankruptcy which started off the relationship.
This is a placeholder account for Talos Energy LLC in Houston, Texas. Questions about the company should be directed to 713-328-3000.
— talosenergy (@talosenergyllc) February 12, 2013
It was a great union because Stone was already a listed public company with 136 million barrels in oil reserves, and Talos not only had money to settle Stone’s debts but could also become listed on the New York Stock Exchange under the ticker TALO for free, paying no cost to get themselves listed on the exchange.
This is not the first time that a member of Talos has had experience with turning out struggling oil companies. Chief Executive Officer of Talos Energy, Tim Duncan, actually has a history of successfully doing just that. After Hurricane Rita had hit in 2005 and destroyed a lot of drilling infrastructure, Cabot Oil lost some of its wells and Mr. Duncan was able to turn everything back around into being profitable once again.
Tim was once quoted as saying that “Talos is very well positioned to capitalize on its high-quality asset portfolio and returns focused capital programs in the U.S. Gulf of Mexico and offshore Mexico, as well as take advantage of potential business development opportunities.”
After all, Talos can now make 47,000 barrels per day after this merger and has a combined 1.2 million acres of drillable space now (about 10% of which is in the Gulf of Mexico).
The new joint Talos venture has $150,000 in liquid, and $450,000 in total cash equivalents. For the future, things are looking up for Talos Energy. They have positively drilled the Mount Providence well in January and will see results from this in September, and on top of this the “Tornado well #3” is on track to start producing oil in early 2019.
Learn More: www.crunchbase.com/organization/talos-energy