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Talos Energy Acquires Texas Oil and Gas Firm Whistler Energy II for USD 52m.

M2 EQUITYBITES-September 6, 2018-Talos Energy Acquires Texas Oil and Gas Firm Whistler Energy II for USD 52m

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6 September 2018 - Texas, US-based exploration and production company Talos Energy Inc. (NYSE : TALO) has completed a transaction to acquire Texas-based oil and gas firm Whistler Energy II, LLC for USD 52m, the company said.

Year to date gross production from Whistler's assets is approximately 1,900 barrels of oil equivalent per day, or net production after royalties of approximately 1,500 Boepd, of which 82% is oil.

As part of this acquisition, Talos negotiated the release of approximately USD 77m of cash collateral that had secured Whistler's surety bonds that the company will not need to replace.

As a result, of the total cash collateral released, Talos received USD 31m, with the seller entitled to the remaining USD 46m.

In addition, Talos also benefited from the USD 7m available cash balance at Whistler at the time of the close, resulting in a net cash consideration of USD 14m to Talos.

This transaction represents a significant win for both Whistler and Talos, where the seller received approximately USD 100m in cash, but the Talos net cash payment was only USD 14m, which represents an acquisition metric of USD 9,333 per net Boepd.

The acquired assets include a 100% working interest in three blocks in the Central Gulf of Mexico Green Canyon 18, Green Canyon 60 and Ewing Bank 988, which comprises 16,494 acres and a fixed production platform located on Green Canyon Block 18 in approximately 750 feet of water. All leases are held-by-production.

Talos is an independent exploration and production company with operations in the United States Gulf of Mexico and in the shallow waters off the coast of Mexico.

UBS Investment Bank acted as transaction advisor to Whistler.

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Publication:M2 EquityBites (EQB)
Geographic Code:1U7TX
Date:Sep 6, 2018
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