HOUSTON, May 25, 2023
/PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE:
TALO) today announced that Zamajal, S. A. de C.V., a wholly owned
subsidiary of Grupo Carso ("Carso"),
has agreed to acquire a 49.9% interest in Talos's Mexican
subsidiary ("Talos Mexico"), which holds the Company's 17.4% stake
in Zama. Carso is one of the world's largest conglomerates and is
headquartered in Mexico City,
Mexico. Talos will remain the controlling shareholder of
Talos Mexico. The transaction is expected to close within the third
quarter of 2023, as is subject to approval by Mexico's Federal Economic Competition
Commission ("COFECE").
Transaction Highlights:
- Purchase price of $124.75 million
for the 49.9% stake, implying a minimum valuation of approximately
$250.0 million for the full 17.4%
stake in Zama, potentially increasing to $262.50 million if certain milestones are
reached.
- $74.85 million will be paid at
closing, with the remaining $49.90
million due at first production.
Talos President and Chief
Executive Officer Timothy S. Duncan
commented: "We are thrilled to partner with Grupo Carso. Our relationship dates back to the
2015 offshore lease sales in Mexico. As we accelerate recent momentum and
advance Zama toward FID and first production, we are confident that
Carso is the right partner at the right time. Carso's investment is
a testament to the economic potential of Zama, and the joint
venture will also benefit from Carso's critical presence in
Mexico and global commercial
experience. We are excited about this broad partnership in
Mexico."
Duncan continued: "This transaction establishes a baseline Zama
valuation for Talos shareholders while providing material upfront
cash proceeds. Most importantly, Talos shareholders retain
significant valuation upside as we advance the project toward first
production."
Talos announced in March 2023 that
the Zama Unit Development Plan was submitted to Mexico's National Commission of Hydrocarbons
for formal approval. Additionally, an Integrated Project Team
("IPT") comprised of individuals from all four Zama Unit Holders
was established to manage the development and operation of Zama
going forward. Talos will co-lead the planning, drilling,
construction, and completion of all Zama wells as well as the
planning, execution, and delivery of Zama's offshore
infrastructure.
ABOUT TALOS ENERGY
Talos Energy (NYSE: TALO) is a technically driven independent
exploration and production company focused on safely and
efficiently maximizing long-term value through its operations,
currently in the United States and
offshore Mexico, both upstream
through oil and gas exploration and production and downstream
through the development of future carbon capture and storage
opportunities. As one of the Gulf of
Mexico's largest public independent producers, we leverage
decades of technical and offshore operational expertise towards the
acquisition, exploration and development of assets in key
geological trends that are present in many offshore basins around
the world. With a focus on environmental stewardship, we are also
utilizing our expertise to explore opportunities to reduce
industrial emissions through our carbon capture and storage
initiatives along the U.S. Gulf of
Mexico. For more information, visit
www.talosenergy.com.
INVESTOR RELATIONS CONTACT
Sergio Maiworm
investor@talosenergy.com
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
This communication may contain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of
1933, as amended (the "Securities Act"), and Section 21E of
the Securities Exchange Act of 1934, as amended. All statements,
other than statements of historical fact included in this
communication, regarding our strategy, future operations, financial
position, estimated revenues and losses, projected costs,
prospects, plans and objectives of management are forward-looking
statements. When used in this communication, the words "will,"
"could," "believe," "anticipate," "intend," "estimate," "expect,"
"project," "forecast," "may," "objective," "plan" and similar
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain such
identifying words. These forward-looking statements are based on
our current expectations and assumptions about future events and
are based on currently available information as to the outcome and
timing of future events.
We caution you that these forward-looking statements are subject
to numerous risks and uncertainties, most of which are difficult to
predict and many of which are beyond our control. These risks
include, but are not limited to, approval of the Unit Development
Plan for the Zama field by Mexico's National Commission of Hydrocarbons,
the success of our carbon capture and sequestration projects,
commodity price volatility, the lack of a resolution to the war in
Ukraine and its impact on certain
commodity markets; the ability or willingness of the Organization
of Petroleum Exporting Countries ("OPEC")
and non-OPEC countries, such as Saudi Arabia and Russia, to set and maintain oil production
levels and the impact of any such actions; the impact of the
ongoing sub-surface water flood project in the Phoenix
Field and any updates to our estimated ultimate recovery from such
project; lack of transportation and storage capacity as a result of
oversupply, government regulations and actions or other factors;
sustained inflation and the impact of central bank policy in
response thereto; lack of availability of drilling and production
equipment and services; environmental risks; drilling and other
operating risks; regulatory changes; adverse weather events,
including tropical storms, hurricanes and winter storms;
cybersecurity threats; the continued impact of the coronavirus
disease 2019 ("COVID-19"), including any new strains or
variants, and governmental measures related thereto; the
uncertainty inherent in estimating reserves and in projecting
future rates of production, cash flow and access to capital; the
timing of development expenditures; the possibility that the
anticipated benefits of recent acquisitions are not realized when
expected or at all, including as a result of the impact of, or
problems arising from, the integration of such acquisitions;
changes to federal income tax laws and regulations, including the
Inflation Reduction Act of 2022; environmental risks; failure to
find, acquire or gain access to other discoveries and prospects or
to successfully develop and produce from our current discoveries
and prospects; geologic risk; drilling and other operating risks;
well control risk; regulatory changes; the uncertainty inherent in
estimating reserves and in projecting future rates of production;
cash flow and access to capital; the timing of development
expenditures; potential adverse reactions or competitive responses
to our acquisitions and other transactions; the possibility that
the anticipated benefits of our acquisitions are not realized when
expected or at all, including as a result of the impact of, or
problems arising from, the integration of acquired assets and
operations, and the other risks discussed in Part I, Item 1A. "Risk
Factors" in our Annual Report on Form 10-K for the year
ended December 31, 2022 and Part II, Item 1A. "Risk Factors"
in our Quarterly Report on Form 10-Q for the quarter ended
March 31, 2023.
Should one or more of the risks or uncertainties described
herein occur, or should underlying assumptions prove incorrect, our
actual results and plans could differ materially from those
expressed in any forward-looking statements. All forward-looking
statements, expressed or implied, included in this communication
are expressly qualified in their entirety by this cautionary
statement. This cautionary statement should also be considered in
connection with any subsequent written or oral forward-looking
statements that we or persons acting on our behalf may issue.
Except as otherwise required by applicable law, we disclaim any
duty to update any forward-looking statements, all of which are
expressly qualified by the statements in this section, to reflect
events or circumstances after the date of this communication.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/talos-energy-announces-mexico-transaction-including-stake-in-zama-with-grupo-carso-301835105.html
SOURCE Talos Energy