Talos Energy Inc. has agreed to acquire QuarterNorth Energy Inc., Houston, for $1.29 billion. The deal would add about 30,000 boe/d from offshore US Gulf of Mexico assets for full-year 2024, averaging about 75% oil from about 95% operated assets.
“The addition of QuarterNorth's overlapping deepwater portfolio with valuable operated infrastructure will increase Talos's operational breadth and production profile while enhancing our margins and cash flow,” Talos president and chief executive officer Timothy S. Duncan said in a release Jan. 15.
QuarterNorth's producing assets include six major Gulf of Mexico fields (95% deepwater). Talos expects the deal to improve its base decline rate by about 20% and increase reserves beyond current production from both producing probable zones and near-term development opportunities in 2024 and 2025.
QuarterNorth operates and holds a 50% working interest in the Katmai discovery in the Green Canyon region, producing an estimated combined 27,000 boe/d gross from two early-life wells. Talos expects Katmai field to produce over 34,000 boe/d gross on average with minimal decline over the next several years based on a successful field development plan including two future well locations and an infrastructure upgrade project in early 2025.
QuarterNorth holds interest in Big Bend, Galapagos, Genovesa, and Gunflint fields, assets with strong production histories with nominal declines and future development potential, Talos said.
The deal is expected to close by the end of first-quarter 2024, subject to certain customary closing conditions and regulatory approvals.
