Talos Energy Enters Into Transaction With Hokchi Energy

In another bold move, Talos Energy has entered into a transaction with an unlikely partner. The company recently announced an arrangement with Hokchi Energy, a subsidiary of the Argentinian Pan American Energy LLC.

The deal involves what is called a “cross assign” of two blocks of territory in Gulf of Mexico Waters. The areas are Block 2 and Block 31. Talos Energy will cross assign its interest in Block 2 for Hokchi’s Block 31.

Talos will give 25% interest in Block 2 to Hokchi for a 25% interest for its Block 31. This latter area is located immediately south of Block 2. After the transaction is completed, Hokchi will be the operator of both blocks while Talos retains its 25% interest.

Talos Energy CEO Tim Duncan said the reason for the exchange is to facilitate a faster, more robust investment and shorter cycle time for production. It’s seen as a win-win situation between Talos and Hokchi. It frees up Talos to focus its own production activity on the new ZAMA-1 well it sunk in Mexican territorial waters in 2017. The ZAMA-1 well may hold a maximum of two billion barrels of oil, according to preliminary estimates.

Talos Energy’s recent foray into Mexican waters made history since no foreign entity has operated with Mexican sovereign territory in more than 80 years. Mexico nationalized its oil industry in 1938. But now Mexican giant Pemex is eager to try new things to revitalize the oil industry south of the border.

The Hokchi and Pemex cooperation deals show that Talos Energy is a different kind of energy exploration company. It is willing to do things differently. Even drilling in the Gulf is considered a higher risk proposition than land-based projects — but the potential long-term profits are much higher if all goes well.

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Achievements Of Talos Energy Company

Talos energy is a self-regulating oil and gas company and also deals with production. The company has eight predictions on these blocks the company is trying to make it possible to add two more blocks.

Talos energy is headed by Timothy S Duncan who is president and Chief Executive Officer he appreciates that there is an important impact in the federal lease sales that has been done recently. The exploration team is highly concentrating on expanding its supply within the production facility. As the outcome of the lease, it reflects all the effort. The Talos energy company is currently the high bidder and it has an expectation of getting an award for the lease in coming months. The Talos energy company competes with other big companies in the energy market, it maintains a sustainable aggressive benefit over other domestic oil producers. Talos energy it is also involved in large join ventures which relates to its center industry.

Talos energy great geological and geophysical experience on how to carry out the operation which is carried out in areas like the Gulf of Mexico and the Gulf Coast region. The company is trying its best to control the production which assists in applying experienced operations. The Talos energy company has over 10 years experience in the region and geological creation.

Talos energy company it is also largely associated in the local community by taking social responsibilities by dealing with unemployment issues and offering charity and non-profit organization. Talos energy company is growing at a high rate the company ensures that it takes care of the long-term workers by offering them good salaries and reasonable working hours. Talos energy company is one of the most recognized company as a great place to work, the company received the award as it was ranked atop workplace in the Houston Chronicle from 2013 to 2017. The Talos energy combination made the company experience overproduction and also the collaboration also brought benefit from the deep invention of exploration and development. The merged company it is focusing on making up to 325 dollars. The Talos energy company is put in place to consolidating chances in the Gulf of Mexico.

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Talos Energy, A Behemoth In The Making

The definition of a pure play stock, the company only invests its resources in one line of business. This equates to the stock being correlated to the industry. If the industry goes up, the stock goes up and vice versa.

In recent years, Tim Duncan of Talos Energy has made a lifestyle of tough situations. Deep into merger negotiations with Stone Energy Company, Hurricane Harvey hit Houston Texas. Duncan’s subdivision became impassable. The power went out and residents knew there was another six feet of water on the way. Duncan lifted his family into a FEMA boat. Afterward he called in a favor and flew the family to friends in Alabama.

The hurricane was not about to deter Tim Duncan from his goal. He set up shop at his parents dining room table and for the next few months worked on nothing else but the merger.

The merger between Talos and Stone Energy would create a company with annual revenues of $900 million. Stone Energy was a public company, Talos would not have to go through the laborious task of creating an IPO. The combined $2.3 billion-dollar company creates a low risk balance sheet with only $700 million in debt.

The initial risk for companies like Talos is their assets are concentrated, offshore. Drilling platforms can run in the hundreds of millions of dollars, with catastrophe lurking around every corner.

Wall Street believes the “smart money” is drilling in places like the Permian Basin and other well-trodden oil fields. Talos represents the classic wildcatter mentality, taking a chance on wells in both the US and Mexico waters.

Talos is producing 48,000 barrels of oil a day with plans for much higher production.

A life long oil man, Tim Duncan has a knack for finding or creating positive oil deals. Talos took over a platform from Chevron tethered to the seafloor 4000 feet below sea level. Then came Hurricane Rita, which sent the platform 60 miles across the Gulf. Talos now pumps 16,000 barrels a day from the platform.

Talos reexamined seismic data from the Phoenix platform. 3000 feet deeper and new reserves were discovered.

Tim Duncan has a knack for finding oil.

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