Talos to Divest Additional Stake in Mexican Unit to Zamajal
Talos Energy Inc. is divesting an additional 30.1 percent stake in its Mexican subsidiary Talos Mexico to Zamajal, S. A. de C.V.
Zamajal is an entity 90 percent owned by Grupo Carso, S.A.B. de C.V. and 10 percent owned by Control Empresarial de Capitales, S.A. de C.V., which owns approximately 24 percent of Talos's common stock.
As consideration for the additional stake, Talos will receive $49.7 million in cash at closing, with an additional $33.0 million due upon first commercial production from the Zama Field, for an aggregate price of $82.7 million, Talos Energy said in a news release. The transaction is expected to close upon receipt of all regulatory approvals.
At closing, Talos Mexico will be owned 20.0 percent by Talos Energy and 80.0 percent by Zamajal. Talos Mexico holds a 17.4 percent interest in the Zama Field.
Talos Interim President and CEO Joseph Mills said, "We are pleased to execute this important transaction with Carso on Zama, crystallizing benefits to Talos's stockholders. This transaction allows us to maximize stockholder returns, maintain our involvement in Zama and contribute to its continued progress”.
In September 2023, Talos Energy closed the sale of a 49.9 percent interest in Talos Mexico to Zamajal. Talos received $74.85 million in cash at closing, with an additional $49.90 million due upon first production, for an aggregate price of $124.75 million.
Meanwhile, Talos Energy reported third-quarter production of 96,500 barrels of oil equivalent per day (boepd), which is at the high-end of its 2024 guidance range.
In its most recent earnings release, the company raised its 2024 production guidance with a revised estimate of 91,000 to 94,000 boepd and lowered its 2024 capital expenditure guidance to $510 million to $530 million.
"Regarding our drilling and recompletion program, we are pleased with the results of the re-completion at the 100 percent Talos-owned Brutus A3 well in July 2024, which yielded a peak production rate of over 30 MMcf/d [million cubic feet per day] during the third quarter,” Mills said.
“We are also pleased about the previously announced Ewing Bank 953 well results in September 2024 and the acquired non-operated stake in the Monument deepwater discovery in August 2024. We logged better than expected rock properties at our Ewing Bank 953 well, which we anticipate will be producing by mid-2026. Our participation in the non-operated Monument project, a large deepwater oil and gas discovery in the Wilcox trend, presents an attractive post-FID subsea tie-back opportunity, including a potential drilling opportunity beyond the appraised discovery,” Mills continued.
In September, Talos Energy announced the discovery of commercial quantities of oil and natural gas at its Ewing Bank 953 (EW 953) well in the Gulf of Mexico (GOM).
The EW 953 well encountered approximately 127 feet of net pay in the target sand at approximately 19,000 feet true vertical depth (TVD), Talos said in an earlier news release.
Preliminary data indicate an estimated gross recoverable resource potential of approximately 15 million – 25 million barrels of oil equivalent (MMboe) from a single subsea well with an initial gross production rate of 8,000 – 10,000 barrels of oil equivalent per day (boepd). First production is expected in mid-2026, Talos stated.
"Additionally, we recently began drilling the first of three consecutive high-impact subsalt wells utilizing the West Vela deepwater drillship, starting with the Katmai West #2 appraisal well in October 2024, to be followed by the Daenerys and Helm's Deep prospects in 2025. We are placing a strong emphasis on operational execution and capital discipline as we embark on a very important drilling campaign,” Mills said.
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