US oil and gas company Talos Energy has completed the $1.29bn acquisition of QuarterNorth Energy.
The deal, a mix of cash and stock, was announced in January and is expected to enhance Talos' deep-water asset portfolio in the US Gulf of Mexico.
QuarterNorth, a privately-held exploration and production company, brings to Talos six major fields, with a focus on deep-water operations.
This strategic move is expected to significantly boost Talos' production capabilities.
With the acquisition, Talos is poised to add approximately 30,000boepd to its production in 2024.
The added production will be predominantly oil, with around 75% coming from 95% operated assets.
Furthermore, Talos will gain proved reserves of around 69 million barrels of oil equivalent with a present value-10 (PV-10) estimated at $1.7bn.
The company has also provided an estimate that QuarterNorth’s average daily production for 2024 will be around 30 million barrels of oil equivalent per day.
Following the acquisition, Talos now has approximately 183 million shares of common stock outstanding.
This includes around 24.4 million shares that were issued to QuarterNorth shareholders as part of the transaction.
In a move to integrate the new acquisition, Talos has added Joseph Mills, QuarterNorth's designee, to its board of directors.
Talos Energy president and CEO Timothy Duncan said: "We are excited to close this important transaction ahead of schedule as we focus on operational execution and acceleration of synergies from the transaction.
"We expect the addition of these predominantly operated, oil-weighted deep-water assets and related infrastructure will enhance our ability to consistently generate substantial free cash flow while expanding our portfolio of growth opportunities.
“We also welcome Joe Mills to our Board. Joe brings valuable experience and insight to our business as an accomplished public company executive in the energy industry and board member in the upstream and midstream business sector."
In May 2023, Talos Energy agreed to divest a 49.9% stake in its Mexican operations to Zamajal, a subsidiary of Grupo Carso.
