Talos, Hokchi to cross-assign interests in two blocks off Mexico

Oct. 18, 2018
Talos Energy Inc., Houston, entered into a transaction with Hokchi Energy SA de CV, a subsidiary of Pan American Energy LLC, to cross-assign its participating interest (PI) in Block 2 and Hokchi’s PI in Block 31. Both blocks are in the Sureste basin offshore Mexico.

Talos Energy Inc., Houston, entered into a transaction with Hokchi Energy SA de CV, a subsidiary of Pan American Energy LLC, to cross-assign its participating interest (PI) in Block 2 and Hokchi’s PI in Block 31. Both blocks are in the Sureste basin offshore Mexico.

Talos will assign a 25% PI in Block 2 to Hokchi in exchange for a 25% PI in Block 31, immediately to the south of Block 2. Hokchi will be the operator of both blocks and Talos will own a 25% PI on Block 2 and a 25% PI on Block 31.

The swap is a way to aggregate and accelerate the investment in various prospects existing in both blocks, specifically the Acan (formerly known as Bacab) prospect in Block 2, where the first of a two-well exploration campaign will begin in second quarter 2019, Talos said. Soon thereafter, Talos plans to participate in two wells in Block 31.

The transaction is subject to approval by Mexican oil and gas regulator National Commission of Hydrocarbons.