The acquired assets produced nearly 19,000 barrels of oil equivalent per day (MBoe/d) during the third quarter of 2019

Talos Energy

Image: Talos Energy has struck deals worth $640m to expand portfolio in US Gulf of Mexico. Photo: courtesy of D Thory/Pixabay.

Talos Energy has signed deals to acquire a portfolio of producing assets, exploration prospects and acreage in the US Gulf of Mexico.

The US-based oil and gas company has entered into asset acquisition agreements worth $640m with ILX Holdings, Castex Energy and Venari Resources.

The acquired assets produced nearly 19,000 barrels of oil equivalent per day (MBoe/d) during the third quarter of 2019. The assets are expected to increase the company’s production to 72MBoe/d.

The deal also includes more than 40 identified exploration prospects located on a combined acreage footprint of around 700,000 gross acres.

The transactions with ILX and Castex are expected to be completed in the first quarter of 2020.

Talos president and CEO Timothy Duncan said: “The acquisition of these assets significantly strengthens Talos’s position as a basin leading independent E&P company, providing increased scale and free cash flow, greater operational diversity and broader optionality in future growth.

“What makes this transaction unique is the combination of high-margin production and a deep portfolio of prospects.

“As we consider the full scale of the pro forma business, the combined cash flow profile and the significant exploration portfolio, we are excited about the tremendous potential to build long-term value, not only from these assets alone but from the optimization of the combined asset base, high-grading of investment opportunities, follow-on business development and M&A activity.”

Talos Energy struck deals with BP and ExxonMobil in September

In September, Talos Energy had signed two separate agreements with BP and Exxon Mobil to expand its portfolio in the US Gulf of Mexico.

As per the terms of the deal signed with BP, Talos agreed to work with BP to drill and evaluate the Puma West prospect, located in Talos-owned Green Canyon Block 821, in the fourth quarter of 2019.

Talos will own 25% interest in the Puma West prospect while BP, as operator, will own the remaining stake.