During the end of August 2018, Talos Energy exited most investors who own a stake when it announced a merger with Whistler Energy. Through its CEO Duncan, Talos revealed the plan to purchase a majority stake in Whistler Energy great assets. At the time of this announcement, the daily production of Whistler assets stood at 1900 barrels of crude oil per day. This acquisition is an excellent addition to Talos Energy Asset portfolio and a great benefit to all its shareholders.
The Purchase involved a $52 million cash payment to Whistler Energy as part of the deal and promised to release an addition $77 million. The acquisition saw Talos Energy benefit for $7 million balance at Whistler Energy by the time the contract was being closed. However, Whistler energy received a $100 million cash payment in different transactions.
The total acquired assets represented a significant majority control of working interests in three major blocks. This block includes Central Gulf of Mexico – Green Canyon 18, Ewing Bank 988 and Green Canyon 60. This means that Talos Energy acquired the entire Green canyon 18 which has an approximate 16, 494 acres. The Green Canyon 18 area was initially owned and developed by ExxonMobil but later bought by Whistler Energy in the year 2012. Collectively the reservoirs produced above 117 million barrels at the time of acquisition.
The merger is part of the comprehensive scope strategies that have seen Talos Energy license the old azimuth seismic data. This data will be used in remapping the current producing reservoirs with a hope that more drilling points will be discovered. Also, on the recent sale of the federal lease in the Gulf of Mexico Talos emerged as the highest bidder. The Leases comprise at least three drilling prospects that could benefit the company through the GC18 production plant.
In a statement, the CEO of Talos Energy expressed his excitement about the bold move to acquire Whistler Energy. He also added that the company had set plans to increase their field studies in the mapped fields to assist in locating promising drilling locations. The Chief Executive Officer explained that the acquisition of Whistler had enabled them to widen the opportunities in the fabulous Green Canyon area.
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