Talos Power Inc. is divesting an extra 30.1 p.c stake in its Mexican subsidiary Talos Mexico to Zamajal, S. A. de C.V.
Zamajal is an entity 90 p.c owned by Grupo Carso, S.A.B. de C.V. and 10 p.c owned by Management Empresarial de Capitales, S.A. de C.V., which owns roughly 24 p.c of Talos’s widespread inventory.
As consideration for the extra stake, Talos will obtain $49.7 million in money at closing, with an extra $33.0 million due upon first industrial manufacturing from the Zama Area, for an mixture value of $82.7 million, Talos Power stated in a information launch. The transaction is anticipated to shut upon receipt of all regulatory approvals.
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At closing, Talos Mexico will likely be owned 20.0 p.c by Talos Power and 80.0 p.c by Zamajal. Talos Mexico holds a 17.4 p.c curiosity within the Zama Area.
Talos Interim President and CEO Joseph Mills stated, “We’re happy to execute this necessary transaction with Carso on Zama, crystallizing advantages to Talos’s stockholders. This transaction permits us to maximise stockholder returns, preserve our involvement in Zama and contribute to its continued progress”.
In September 2023, Talos Power closed the sale of a 49.9 p.c curiosity in Talos Mexico to Zamajal. Talos acquired $74.85 million in money at closing, with an extra $49.90 million due upon first manufacturing, for an mixture value of $124.75 million.
In the meantime, Talos Power reported third-quarter manufacturing of 96,500 barrels of oil equal per day (boepd), which is on the high-end of its 2024 steerage vary.
In its most up-to-date earnings launch, the corporate raised its 2024 manufacturing steerage with a revised estimate of 91,000 to 94,000 boepd and lowered its 2024 capital expenditure steerage to $510 million to $530 million.
“Concerning our drilling and recompletion program, we’re happy with the outcomes of the re-completion on the one hundred pc Talos-owned Brutus A3 effectively in July 2024, which yielded a peak manufacturing charge of over 30 MMcf/d [million cubic feet per day] through the third quarter,” Mills stated.
“We’re additionally happy concerning the beforehand introduced Ewing Financial institution 953 effectively ends in September 2024 and the acquired non-operated stake within the Monument deepwater discovery in August 2024. We logged higher than anticipated rock properties at our Ewing Financial institution 953 effectively, which we anticipate will likely be producing by mid-2026. Our participation within the non-operated Monument mission, a big deepwater oil and fuel discovery within the Wilcox pattern, presents a horny post-FID subsea tie-back alternative, together with a possible drilling alternative past the appraised discovery,” Mills continued.
In September, Talos Power introduced the invention of economic portions of oil and pure fuel at its Ewing Financial institution 953 (EW 953) effectively within the Gulf of Mexico (GOM).
The EW 953 effectively encountered roughly 127 toes of web pay within the goal sand at roughly 19,000 toes true vertical depth (TVD), Talos stated in an earlier information launch.
Preliminary knowledge point out an estimated gross recoverable useful resource potential of roughly 15 million – 25 million barrels of oil equal (MMboe) from a single subsea effectively with an preliminary gross manufacturing charge of 8,000 – 10,000 barrels of oil equal per day (boepd). First manufacturing is anticipated in mid-2026, Talos acknowledged.
“Moreover, we not too long ago started drilling the primary of three consecutive high-impact subsalt wells using the West Vela deepwater drillship, beginning with the Katmai West #2 appraisal effectively in October 2024, to be adopted by the Daenerys and Helm’s Deep prospects in 2025. We’re putting a robust emphasis on operational execution and capital self-discipline as we embark on a vital drilling marketing campaign,” Mills stated.
To contact the writer, e-mail rocky.teodoro@rigzone.com
