Talos Energy will spend $640 million to acquire assets, exploration prospects, and acreage in the US Gulf of Mexico from ILX Holdings. Both companies have reportedly entered into a series of definitive purchase and sale agreements for the assets.
Specifically, Talos has signed definitive deals to acquire all producing assets, acreage and prospects of ILX Holdings and ILX Holdings II, as well as acreage and prospects of ILX Holdings III. It also acquires ILX Holdings’ subsidiaries Castex 2014 and Castex 2016 as well as all primary term acreage and prospects from Venari Resources, an ILX Holdings’ affiliate, in a separate transaction.
The purchased assets produced about 19,000 boepd in the third quarter of 2019. The acquisition also includes a total acreage of 700,000 gross acres with more than 40 identified exploration prospects. The purchase of ILX and Caster is expected to be closed in 2020.
Timothy S. Duncan, Talos’ president and CEO, said the acquisition would reinforce Talos’ foothold as an independent E&P company. The assets are also expected to generate additional free cash flow and provide greater operational diversity.
