Recently, Talos Energy LLC had a merger with Stone Energy Corp. the merger was worth $2 billion. The completion of the transaction happened on May 10, 2018. The new company has begun trading under a new ticker symbol (TALO) on the New York Stock Exchange. The base of the new company will be in Houston, Texas.
The CEO of Talos Energy LLC, Timothy Duncan, worked on this merger deal in between the Hurricane Harvey floodwater crisis. Before the merger, Stone had done poorly in the oil business where it was in debt and had become bankrupt. It recorded a loss of $189.5 million in 2014, $1.1 billion in 2015 and $590.6 in 2016.
The new company is estimated to bring in $900 million worth of revenue annually as it begins to trade. Per day, the new company can produce 48000 barrels of oil and even more. This merger also will benefit Talos since it has inherited a crucial asset known as the Pompano platform that had been acquired from BP at $200 million.
Talos’ CEO, Thomas Duncan, knows how to make most of any tough situation. He took over the Chevron’s field, formerly known as the Typhoon Field (the now Phoenix Field) after the Hurricane Rita (2005) destroyed Chevron’s activities on the field. It now produces a maximum of 16000 barrels of oil per day. Talos has a plan of making more discoveries in the Phoenix Field 3000 feet deeper than the current oil reservoirs.
Before becoming the CEO of Talos Energy, Duncan started off in Zilkha Energy as an engineer (1996). The founding of Gryphon Exploration happened with Duncan’s help in 2000. He then began the Phoenix Exploration as a co-founder (2006). In 2012, Duncan founded Talos Energy where Riverstone and Apollo raised $600 million for the company’s start.
Recently, Talos, in collaboration with the U.K.’s Premier Oil and Sierra Oil & Gas got acreage in the Mexican water. During drilling, they discovered a sandstone containing an approximated 2 billion barrels of oil. This discovery is an advantage for Talos since it will significantly boost the company’s oil business.