Stone Energy Joins Forces with Talos Energy in Gulf Coast Merger

Talos Energy owns more than 33,000 miles of seismological information regarding the layout of the underwater topography in the Gulf of Mexico, off the coast of the United States of America under Louisiana. Talos Energy, founded in 2012, uses the data to more efficiently streamline the process of finding new areas to drill and explore. For seven decades there has been a steady progression in the types of methods used to drill, control oil wells, and find new areas. These techniques have resulted in a slew of increased productivity for drilling and exploration companies across the board. Talos has been rated one of the top places to work from 2013 to 2017 according to the Houston Chronicle, the biggest newspaper in the city of Houston, Texas.

The majority of the operations of Talos Energy occur in the Gulf Coast between Houston and New Orleans. And in working with or being around other oil production companies in the Gulf area, Talos has joined forces with Stone Energy company in a 1.9 billion dollar merger. Stone Energy company currently trades under the Ticker “SGY” on the New York Stock Exchange, but the new company will be called Talos Energy Incorporated, and will trade under the ticker “TALO”. The chief executive officer Timothy Duncan believes that the merger will position Talos To be a more premium drilling, production, and exploration company.

The result of the merger will allow the two companies to accelerate the rate at which they are individually acting on their business endeavors. After the dust settles, current Talos shareholders will own 67 percent of the new company, and stone employees will own 37 percent of the shares. Based on a stock share price of $35.49 on November 20th, the enterprise valuation of the company will actually be at 2.5 billion dollars.

In combination, the new company will have a total of 1.2 million acres from which to explore and produce oil. In 2017, the company was producing on its own 47000 barrels of oil per day and had a reserve of 136 million barrels.

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