How Talos Energy’s capitalization On Zama-1 Brought It Massive Success

Success in business has always been about taking risky moves. This is a fact that Talos Energy, an oil and gas company that operates predominantly in the Gulf of Mexico and South Louisiana proves best.

Though small in comparison to the integrated E&P companies it competes with, Talos Energy continues to take over the E&P market through the known technique of expansion through acquisition and also by capitalizing on emerging opportunities. For instance, a few months after the completion of Whistler energy II acquisition transaction, Talos energy is now planning on developing its Zama-1 discovery on the Mexican Gulf. The plans were announced and authorized by Mexico’s own National hydrocarbons commission late last year.

Why it’s a bold move.

To help you understand why Talos Energy’s plans to develop the Zama-1 discovery project is a bold move, first take a walk down memory lane. Before 2015, no private E&P company could explore or produce oil from the Mexican waters, following a law that was put in place in 1938, which nationalized this field of economic growth. Hence for the last seven decades or so, only Pemex, a state-owned petroleum company was allowed to capitalize on the rich Mexican resources.

However, the embezzlement of funds and poor management saw Pemex become severely undercapitalized. It is at this point that reality hit the Mexican government hard because compared to other governments such as America which had allowed private companies such as Shell and Chevron develop resources, Mexico’s E&P sector was lagging.

In respect to this, Mexico’s congress passed an amendment in 2014 which allowed private investors and operators to tap into the rich Mexican’s gulf’s waters, and it became active in 2015. A horde of private companies led by Talos Energy made a go for it, but integrated companies decided to hold back due to the high geopolitical risks that came with developing the Mexican side.

Despite most notable companies holding back, Talos energy took the risk and looking at the success that it has enjoyed since the discovery of the Zama-1 field, there is no doubt that it made the right move. Even though Talos energy does not disclose the actual size of Zama-1, it is listed among the 20 largest shallow water oil field discoveries in the world and is set to have a production capacity of approximately 1.4 and 2 billion barrels of oil.

The project has not only boosted Talos energy leverage in the E&P realm but also saw it bag the Discovery of the year 2017 awards, and is expected to help the company generate substantial revenues once it commences.

About Talos Energy

Based in Houston, Talos Energy is a gas and oil exploration company that has been in successful play for more than 17 years. Led by Tim Duncan and a panel of other innovative leaders, the company continues to take over the oil and gas realm through the acquisition of other smaller companies, as well as capitalizing on emerging opportunities as shown above.

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Talos Energy Impact And Development In The Commercial Sector

Talos Energy has been able to link and work together with Stone Energy Corporation. The partnered firms initiated their operations on the New York Stock Exchange using a different trademark. It is located in Houston, where main activities take place. Through merging, they were able to start providing stock to the public without the cost of public offering.

In addition, they built a streamlined offshore that will sustain a growing quality asset base and prominent cost profile. Stakeholders will also gain massively through improved scale and liquidity. Talos is focused to fund its own asset platform and returns which concentrate on capital programs. They also take the benefit of prospective business progress chances.

Talos Energy joined a new credit contract with a beginning lending base of $600 million. The firm used to plan strategies to offer detailed financial operational management. It also concentrated on creative survey and production to obtain essential capital. The main key objectives are to obtain, exploit and research in the Gulf region.

They are able to use their seismic information, which is provided by advanced methods and the functional experience in the field. During 2017, Talos Energy took a risk of a huge oil deposit that was found in the Zama-1 field. Currently, it is among the 20 biggest shallow-water findings globally over the past two decades. The site produces 100000 barrels daily, which makes a huge return on the firm.

Through this finding, Talos were recognized for their efforts and awarded with the Discovery of the Year 2017 at WoodMackenzie’s yearly exploration awards event. Talos Energy is a segment of the Block 7 consortium which contains Talos, Sierra Oil and Gas, and Premier Oil. It also occupies 35% of the total consortium and functions as the main operator. In September, Talos Energy was able to fully acquire Whistler Energy. This acquisition was made at $52 million.

In addition, they also purchased the properties which comprised of three blocks. During 2013, the Houston Chronicle recognized Talos as the first top workplace in Houston location for firms below 150 workers. It has been able to retain this position for the past five years.

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Talos Energy Brilliant Approach To Employment

Working for oil production companies presents one with a different experience owing to the nature of the industry. Talos Energy, however, is unique in its approach to some factor pertaining to employment. First, Talos Energy is the only company in this particular niche that has the most flexible working hours. Flexible working hours is one-step to improving quality of production. Still on the company’s approach to employment, the company is a haven for differently able people willing to work in the oil industry. This open door policy has given Talos Energy a good reputation in the strict employment world. In addition, the company has continually developed good chain of command at the attempt of making the company administratively viable.

The company is undeniably the best place to work in oil industry. For four years, Talos Energy has also continually challenged the notion of how a workplace should be in terms of structures and support systems. This explanation expounds the reason why the company for four years in a row has been a champion of the best place to work. Even with the reality that the company is in the vast oil industry, Talos Energy has always ensured that their company is the ideal place to work. The main reason for this unmatched recognition is due to the company’s principles on the importance of human resources in pushing their agenda in the competitive oil industry. Many human resources pundits point out that a company as Talos Energy has higher chances in fostering better philosophy.

In addition, from being the best employer and providing the best environment to work from, Talos Energy is a home to the best innovators. Innovation is the main reason why the company has challenged the oil exploration limits over the years. Unlike the typical exploration, Talos Energy has gone to areas that were previously perceived to be unreachable and therefore not potential mineral grounds. Some of the main areas which the company has active exploration and exploit include the Gulf Coast and the Gulf of Mexico. The two places represent different dynamics and therefore require high technology and better exploration methods.

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Chaos Fuel Talos Energy

The energy industry is both a risky venture and a profitable business depending on one’s perception. When it rains in that industry, it pours. The funny thing is that Talos Energy was born and continues to thrive on the problems, chaos, and despair to emerge victoriously. Talos Energy is the company that smells masked opportunity as far as Mexico.

Talos Energy trounces the competition in the industry by navigating dangerous waters. A while back, the company sought to acquire tone Energy, a bankrupt company. While it was accessible to sight debt, Talos saw a shortcut to trading publicly assets worth much more than the debt that lay bare for all to see. In 2005, the world would not touch the Phoenix field even with a long pole. It was a disaster site, who wants all the trouble? Talos Energy wanted it all and acquired it, turning it to the success it is today. A well so successful it produces sixteen thousand barrels in a single working day.

In the year gone by Talos Energy saw an opportunity that others passed by and acquired a newly auctioned field in Mexico. The idea seemed bonkers at the time but Talos being who they are grabbed the idea with both hands and set for billions in five years. It is a company that follows the less trodden path, buys into uncertainty and reaps big. It does not wonder for a company whose foundation was marked by a crashing oil market and still managed to emerge from the chaos that followed into the success it now enjoys.

More about Talos Energy

Tim Duncan is its founder. The company founded in 2012, has over two hundred employees who specialize in oil and natural gas. Although based in Houston, Texas, its principal operations are in the Gulf of Mexico. The company owes its success to a good management system, ground-breaking technology and not so textbook purchases. Talos Energy built and sold Phoenix Exploration Company and Gryphon Exploration Company both of which are still unbeaten. The company seems to thrive on a mantra of going big or go home. If it is not a scary investment enough, it’s not worth it for Talos Energy.

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