Talos Energy was created when The Chief Executive of Talos Energy Tim Duncan began a four month negotiation for a $2.5 Billion dollar merger. The strategic method was to take Mr Duncan’s own company Stone Energy and combine it with the failing company Talos Energy.
In order for Mr. Duncan to do this he needed capital and a lot of it. Therefore, he began negotiations with Franklin Templeton Investments as well as McCkay Shields. The negotiations were on how to best manage the $800 Million dollars of debt of the two companies.
Finally the decisions were made along with the help of the finance managers of two main owners of Talos Energy. The finance managers were River-stone and Apollo Management.
Tim Duncan was in the process of the merger negotiation 2 days after one of the worlds worst hurricanes hit his residential area of Kingwood, Texas. The Hurricane was named Harvey and it hit the Gulf Coast in August, 2017.
Mr Duncan took his wife, his small son and two pet dogs and lifted them into a FEMA rescue boat because it was forecast that more flood waters were coming soon. The negotiations were interrupted due to weather conditions.
Mr Duncan and family soon ended up back in Texas at his mothers home in Houston, Texas. Mr Duncan Finalized the negotiation of the merger at his mothers kitchen table.
The Merger of the two companies has allowed Talos Energy Oil company to create a whopping $900 Million from assets in the Gulf of Mexico from offshore drilling. The new company Talos Energy now produces approximately 48,000 barrels of oil or more a day.
The first well in approximately 80 years off Mexico’s shore hit an oil soaked layer that turned out to produce 2 billion barrels of oil alone. New areas to drill are now available in the Gulf of Mexico as the leasing of ocean spots are easy to grab.
The reason is because there a few drilling companies left to take the spots. Many companies went bankrupt when Obama ceased the offshore drilling!
New explorations in the detecting of oil as well as maintaining production now make Talos Energy a leader in the oil industry. Talos Energy makes new discoveries with new technology and resources yearly and continue to improve the company standards.