Both Talos and Stone are US-based oil and gas companies with focus on the Gulf of Mexico.
Their combination will have estimated 2017 average daily production of nearly 47Mboe and proved reserves of 136MMboe as of 30 June, 2017, of which 69% is oil.
According to the two companies, 74% of their combined reserves are located in the Deepwater Gulf of Mexico.
The combined company, which will take the name Talos Energy, will be owned 63% by Talos shareholders and 37% by Stone shareholders. Talos Energy will have its headquarters in Houston, Texas and maintain additional offices located in Lafayette and New Orleans.
Stone interim CEO and president James M. Trimble said: “The team's management of Stone's assets and business in a safe and environmentally responsible manner will continue our success for the combined shareholder base.
“The combined company will be strategically positioned to drive meaningful production growth through complementary acreage positions.”
Talos Energy will have more than 1.2 million combined gross acres in the Gulf of Mexico, out of which nearly 160,000 acres is located offshore Mexico.
The assets of the combined entity will include the Talos-operated Zama oil discovery, which is estimated to hold 1.4-2.0 billion gross barrels of oil. Talos has a stake of 35% in the offshore Mexican field where it is partnered by Sierra and Premier which hold stakes of 40% and 25% respectively.
Talos CEO Timothy S. Duncan said: “We will have two core areas in the Deepwater U.S. Gulf of Mexico Deepwater and the outstanding new Zama discovery located in the shallow waters of offshore Mexico.
“The combined talent, technical resources and balance sheet of the resulting company will allow us to accelerate development of our own robust project inventory while also giving us the horsepower to pursue compelling transactional and exploration opportunities.”
The merger deal is anticipated to be completed in late first quarter or early in the second quarter of 2018, subject to certain regulatory approvals and other customary conditions.
Image: Tallos and Stone aim to form a combined offshore-focused exploration and production company. Photo: courtesy of num_skyman/Freedigitalphotos.net.
