Talos Energy : The Path Towards Open Communication

Posted on December 04, 2018

In the wake of a recently discovered oil deposit of over 2 billion barrels of oil in the Gulf of Mexico, Talos energy and CEO Tim Duncan are seeking to form a partnership with PEMEX (Mexico’s state-run oil company) due to the fact that the adjacent block is owned by PEMEX. Tim Duncan stated that a partnership would see open communication within companies and the sharing of data that would benefit everyone. This partnership would also include a consortium with British oil and Mexico’s Sierra Oil and Gas.

The aim to form a partnership did not come without its obstacles. It’s often forgotten that for many years the Mexican government restricted and banned any partnerships with outside entities. This move was made early on during the infancy of the Mexican government in order to protect their natural resources as well as to allow their oil company PEMEX to grow. The move worked for many years as PEMEX would grow to be one of the largest oil companies in the world, however, later corruption and mismanagement led to its budget being cut and the company would go into a 14-year slump.

For CEO Tim Duncan, however, there was a light at the end of the tunnel in the form of newly elected president Andres Manuel Lopez Obrador. President-elect Obrador campaigned on his promise to bring back strength and respect to the struggling oil company, so when Tim Duncan met President-elect Obrador both unanimously agreed that a partnership would be in everyone’s interest. After a quick approval for the appraisal plan by the Mexican Oil regulators, Talos Energy and the Zama project where set to begin drilling in late November of 2018 with the installation of two new wells in mid-2019. Chief Executive Officer Tim Duncan stated that by 2023, the wells would be producing up to 150,000 barrels of oil per day.

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Talos Energy Becomes A Bigwig Oil Exploration Company In The Gulf Of Mexico

Posted on September 16, 2018

Tim Duncan believes that offshore wells are for opportunists and that, if you wish to have a $200 million long-shot investment in the Gulf of Mexico.

Duncan is the Chief Executive Officer of Talos Energy, a privately-owned company focused on the exploration of oil and gas in offshore wells. The firm mainly targets at acquiring assets across the Gulf of Mexico with great emphasis on asset optimization, exploration and exploitation.

For four months, the 45-year-old investor was working on a merger deal with Stone Energy Company, a company that went public and later bankrupt. Considering the deal was worth $2.5 billion, it was a huge risk but that would allow Talos to trade publicly without a public offering.

Tim decided to move his family to safer house after Hurricane Harvey hit hometown. There was no better place than at his parents’ place. In fact, he negotiated the deal while working on his mother kitchen tabletop. The merger was settled in May, and that gave Talos Energy an opportunity of earning an annual revenue of $900 million in the Gulf of Mexico. This brings a low-risk balance between 700 million dollars in debts against $2.3-billion-worth assets, which can hardly offset operational risks and the possibility of spills.

Duncan Sees an Opportunity in Every Challenging Situation

Tim Duncan seem to have the knack of turning into good what people have left for litter. Phoenix field is Talos’s huge assets. The company was an established oil driller with six drilled wells and production division tethered to the 4000-meter-deep sea floor. Hurricane Rita hit in 2005, leading to its tumble.

Today, Phoenix pumps out 16,000 barrels a day. From the Stone merger, Talos inherits Pompano production platform purchased from BP at a cost of $200 million. The network of infrastructure at the Gulf has enabled Talos to bring together new discoveries into existing production platforms many miles away. Duncan refers to it as the “Developed Deepwater Model.”

Truly, Duncan has silenced speculators by proving that he can sell 80%of this year output at a future’s trade of $55 per barrel. And Duncan says: I know the right price to ensure the bit turns and lock it in.”

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