Talo Energy Company is a self-governing technical company that majors on exploration, exploitation, and production of oil and gas. They operate in the United States Gulf of Mexico and the offshore of Coast of Mexico. The shallow waters at the offshore of the Coast of Mexico provide better exploration sites and opportunities in an emerging basin.
Talo Energy entered a complete transaction to acquire Whistler Energy II on August 31, 2018. The gross production of the Whistler assets is about 1,900 barrels of oil per day.
Of the $52 million purchase price to acquire Whistler, Talo Company negotiated the release of $77 million of cash to reassure Whistler’s surety bonds that the company needs. As a result of the cash release, Talo received in return $31 million, with the seller remaining with the rest of the amount. Also, Talo profited from the $7 million cash balance available at the Whistler the time of closing the operation.
This transaction was a significant benefit of the Talo and the Whistler. The acquired asset by the Talo Company included 100% in three blocks in the Central Gulf of Mexico- Green Canyon 60, Green Canyon 18 and the Ewing Bank 988, which comprises of the 16,494 acres, and a permanent production located on the Green Canyon Block 18. The Green Canyon 18 field has a total output of more than 117 million barrels of oil. It is situated about 18 miles north of the Talos. It operates Phoenix Field, and Tornado discovery and currently has production of 30,000 barrels of oil in a day and 30,000 cubic feet of gas per day.
The benefit of acquiring Whistler asset is beyond the production leases. Talo Energy Company has licensed the azimuth seismic data, which reprocessed to aid in re-mapping of the production pools and generates the drilling projections.
Timothy S. Duncan, the Chief Executive Officer of Talo Energy said that they are fond of their results in the Mt. Providence well. It was very impressive to experience the rise in production rate at the end. They have an executive team that is well organized and highly dedicated to the growth and development of Talo Energy. They are set to make more developments in their firm for more results.
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