A deal has been struck with Houston based Talos Energy and a recently bankrupt Stone Energy that will see the two oil companies merge together. The move will also officially make Talos Energy a publically traded company under the name “TALOS” which in turn will save them the expense of going through a lengthy and expensive public offering. The company began making plans to go public years ago and hoped to accomplish that goal by 2014 or to the very least by 2015, however, due to the recent oil crash those plans where cut short.
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
What all this means now is that Talos Energy will have a larger presence, not only in the United States but also in the risky political waters of Mexico. That risk would be minimized when a newly elected president came into power in Mexico. Prior to President-elect Obrador, PEMEX, the Mexican state-run oil company rarely if ever formed partnerships with foreign entities. With a newly reformed PEMEX, Talos Energy in conjunction with Chief Executive Officer Tim Duncan was able to strike a partnership. With their ZAMA project, Talos Energy would be one of the first companies to win a bid that allowed Talos to drill in the Gulf of Mexico, soon after, Talos would strike a large oil deposit in the Gulf of Mexico, the first in the countries newly deregulated economy.
So, what did Talos receive at the end of closing?
1) Entry into a new credit facility agreement which entails a loan of $600 million dollar loan, half which is already available within the company
2) $450 million in liquidity with over $150 Million in on-hand cash.
3) Year-end 2p reserves that were disclosed to the U.S Securities and Exchange Commission prior to the merger taking place
Talos Energy has stated through their spokesperson that they will disclose more information about the merger in the upcoming weeks.
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