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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