Talos Energy Inc. is in the Gulf of Mexico. The reason is the conditions Geologists determine. Geologists determine the conditions by testing samples of the seafloor in the Gulf. 3D seismic imaging equipment maps the seafloor. If the conditions test positive for specific rock, minerals and the 3D image looks like an oil deposit is there. Talos Energy will begin the process of building a drilling platform.
One reason that the Gulf of Mexico is so valuable is that it is an area where dinosaur, plants and other organisms died. The plants and animals millions of years ago died and over time soil and rocks covered up the bodies. Next, the bodies decayed. The seafloor along with the heat from the earth core turned decayed bodies into oil deposits. This makes the Gulf a sought after area for oil.
Talos Energy Inc. oil and gas company gained over 14 blocks of deep and shallow acreage in the Gulf of Mexico over the last ten years. Talos Energy also bought the company Whistler Energy ll, LLC. Whistler Energy production rate was 1,900 (BOEPD) also known as Barrels Of Oil Per Day. The drilling platform Whistler owned was in the Gulf. The sale was closed August 31st of 2018.
Whistler’s asking price was $52 Million dollars from Talos. Because Talos has active producing wells already established in the Gulf. Whistler received over $100 Million Dollars for the sale. Even though Talos only paid $14 Million out of pocket. As Whistler also sold the collateral it held. The collateral was over 77 million barrels of oil and bonds. That along with the sale of the company totaled over $100 Million dollars.
Therefore, Talos Energy continues to gain more property and drilling platforms that already produce thousands of barrels of oil per day. Talos Energy Inc. will have the new 14 blocks of property analyzed while the existing platforms bring in profit. The company will also build new platforms on the sites that have been analyzed. The analyzed sites show to be promising oil producers.
Talos plans to drill both shallow water and deepwater wells in the Gulf soon. With both establishing profitable wells for years to come.
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