Talos Energy, a leading independent energy company in the Gulf of Mexico, is well-positioned to take advantage of offshore growth acceleration over the next few years after completing the acquisition of EnVen Energy.

Since Talos announced the strategic acquisition of EnVen in September of 2022, the closing of which was announced this week, the company stated additional encouraging news. It announced successful drilling results from its Lime Rock and Venice deepwater prospects, discovering commercial quantities of oil and gas that will flow via subsea tiebacks through the company's owned and operated Ram Powell platform. A redetermination of their borrowing base, which was approved last fall, provides ample liquidity to continue to grow the upstream business, expand the CCS portfolio and mature key projects, according to Shane Young, Talos CFO.  With the “EnVen acquisition, Talos will have a larger, more diverse asset base and the strongest credit profile in the company's history."     

According to TGS Well Data Analytics platform, the proforma company will produce approximately 100 mboe per day, propelling the new company to become one of the top 10 producers in the Gulf of Mexico.

Doubling down on the Gulf of Mexico comes at a time when U.S. shale growth is reconciled with investor pressure to return capital rather than developing new resources, workforce constraints, rising costs, and limited sweet spots to drill for some operators. In contrast, the confluence of low offshore spare capacity, over five years of underinvestment in the space, and a call for increased energy security worldwide is reactivating the offshore segment domestically and internationally. As laid out by Clay Williams, CEO of NOV Inc., one of the largest worldwide E&P suppliers: "As we completed 2022, we began to see international and offshore markets inflect and accelerate, a trend we expect to drive improving orders for our longer-cycle businesses over the next few years and beyond." Talos enters the year 2023 uniquely positioned to benefit from the expected offshore upcycle ahead after successfully completing the acquisition of Enven Energy, adding additional commercial reserves to its portfolio, and expanding its borrowing base redetermination. In addition, the Gulf of Mexico Deepwater has been identified by various institutions as one of the lowest carbon intensity producing basins in the world.