When it comes to seeking out locations that have the potential to produce millions of barrels of oil, Talos Energy is at the head of the class. Before their debut in 2012, The current founders of Talos Energy successfully grew and sold two oil and gas companies; One was Phoenix Exploration Co and the other Gryphon Exploration Company. Since then, Talos Energy has taken massive steps in making their presence known in the Gulf of Mexico.
Last year, as the city of Houston and surrounding areas of Texas, were being battered by the wind and rain of Hurricane Harvey, CEO of Talos Energy, Tim Duncan, was negotiating for a merger with Stone Energy. Stone Energy Corporation is also a Texas-based oil and gas exploration unit; However, they failed to keep their head above water in the Gulf of Mexico as they claimed bankruptcy. Though the company came with a deficit of $700 million, shareholders can find relief in the fact that Stone Energy also comes with $2.3 billion in assets. Using updated seismic data, Talos Energy was able to find better drilling positions in the wells previously owned by Stone, and are now producing up to 16,000 barrels of oil a day.
Talos Energy had no intention of stopping there. Recently, they placed bids for all 14 of the locations up for grabs at the federal lease sale. Fortunately, they were able to obtain all 14 blocks, eight of which are shallow water and the other six being deep water locations. The total cost of all blocks totaled to $5.3 million and equated to 75,000 net acres of space in the Gulf of Mexico. Another massive feat that the company recently conquered was obtaining a preliminary contract with Pemex in Mexico. No other deal like this has ever happened in the past, so in a sense, Talos Energy is making history right here in Houston, Texas! They were able to seal the deal with Pemex when they gave information collected from their Zama-1 well. The Area-7 shallow water location hosts a deposit that could produce 1.2 billion to 1.8 billion barrels of oil in total. It was this fact that sealed the deal with Pemex and gave Talos Energy yet another stronghold in the Gulf of Mexico.
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