In a series of agreements with the three companies, Talos acquired platforms which produced 19,000 barrels per day in Q3 2019 and 700,000 acres for exploration. Talos funded the $640 million with a share issue.
Talos will take control of ILX Holdings’ assets in the Gulf of Mexico from the start of March.
Last year, Talos produced over 17 million barrels of oil (MMBbl), 35bn cubic feet (bcf) of gas and 1.6 MMBbl of natural gas. With the new acquisitions, it expects to produce up to 25.7 million barrels of oil equivalent (MMBoe) in 2020.
This would mean an average production of between 66.8 and 70.2 barrels of oil equivalent (Mboe/d) per day.
The company also gave updates on the wells it operates across the Gulf of Mexico.
The Bulleit well, which Talos half-owns, will be completed in 2020, with production beginning in the third quarter (Q3).
Also in Q3, Talos expects to complete a second water injection well in the Tornado field. Wells in the Green Canyon 18 field, fully owned by the company, will begin producing at around the same time, spudding before March.
The company will make a decision on whether to invest in the Zama field off the Mexican coast, and is working to get permits for more exploration nearby.
The company expects to announce two more high-impact projects in 2020 but did not give any further details.
President and Chief Executive Officer Timothy S. Duncan commented, “I believe [Talos’ 2020 guidance] strikes the right balance between free cash flow generation in a volatile commodity market environment, and the appropriate level of investment to allow for longer-term value creation for our shareholders.
“[…] In offshore Mexico, we continue to stay focused on moving Zama forward towards final investment decision and also integrating the data we gathered during our successful Xaxamani discovery on Block 31.”