Talos Energy Offshore LLC signed a definitive agreement to buy certain Gulf of Mexico Outer Continental Shelf properties from Stone Energy Corp., Lafayette, La., for $200 million in cash and assumed future undiscounted abandonment liabilities of $117 million. Stone has deemed these assets to be “noncore” to its operations.
Talos Energy is a partnership formed in 2012 with Apollo Global Management and Riverstone Holdings for the purposes of buying assets in the Gulf Coast and Gulf of Mexico with emphasis on asset optimization, exploitation, and exploration, according to the company’s web site.
The assets acquired represented production volumes of 57 MMcfd of natural gas equivalent (58% gas) for this year’s first quarter. The estimated proved reserves associated with these properties represented about 9% of Stone’s yearend 2013 estimated proved reserves. Stone will retain an option for a 50% working interest in the deep drilling rights on the properties, the company said.
The effective date for the deal will be Apr. 1, and the transaction is expected to close by early August.