It has been confirmed that Talos Energy has merged with Stone Energy in all stock transactions that is aimed at creating a premier offshore focused exploration company. Talos board explained that the decision to join was reached unanimously by all directors. The New merge will be under a new name Talos Energy Inc and will begin trading at the New York Stock Exchange under the title TALO.
Some critical details for the combination include; Pro Forma Estimates of 2017 daily average oil production of nearly 47,000 barrel of crude oil. The current discoveries of Tornado II and Rampart which will provide the needed opportunities for growth and expansion of the company. Another highlight includes a long-term strategy for the growth of Zama oil discovered in the Mexican waters.
Under the new agreement, the terms of transaction every share of Stone Energy Corporation will be exchanged for One stock of Talos Energy Inc. This means that all the shareholders of Talos will own a majority stake of 63% of the combined entities. It will also translate that Talos Energy, Inc will have an initial equity market capitalization of $1.9 billion.
The Merge will allow the two companies to combine the necessary experience, talents and technical resources that are vital in accelerating development strategies. The combination also created a double benefit for the Stakeholders who will begin to enjoy high returns in their investments. Together Stone Energy and Talos can now plan to build a great front-runner in the Gulf of Mexico.
Mr. James M. Trimble who is also Stone’s Energy Interim CEO and President expressed that the success and achievement that the company has experienced is attributed to all employees. In a statement, he thanked the focus and dedicated employees of Stone for positioning the company in the competitive and profitable state. He also urged all workers to embrace teamwork with the new partners to ensure that both companies build a prosperous future. Talos Energy CEO will with doubt become the new Chief Executive Officer of the new merge. Therefore, the combined Board of directors from both companies will have a maximum of 10members; four fetched from Stone and six from Talos.
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