Talos (NYSE:TALO) is also considering EnVen’s $288 million in debt at the end of 2021. Talos (NYSE:TALO) Energy is in early negotiations to acquire EnVen (NYQ:ENVN), which owns oil and gas properties in the Gulf of Mexico, for around $1 billion, according to Reuters and people with knowledge of the situation. Talos is also interested in assuming EnVen’s debt, which is backed by the American private investment firm Bain Capital.
According to EnVen’s March 2022 presentation, the company’s debt at the end of 2021 was $288 million. A potential transaction is anticipated to result in the formation of a larger firm that would be better positioned to profit from rising crude oil prices. According to the sources, Talos (NYSE:TALO) would acquire either the majority or all of EnVen’s shares. The sources stressed that there is no assurance that negotiations will result in an agreement between the two companies.
Tim Duncan, CEO of Talos (NYSE:TALO) stated in May 2022 that the company is investigating the acquisition of Gulf of Mexico-focused assets to increase its production capacity. EnVen (NYQ:ENVN) focuses on the development, exploitation, exploration, and purchase of oil properties in the Gulf of Mexico.
In a separate announcement, Mexican state-owned petroleum giant Petroleos Mexicanos (Pemex) said it would invest in the 850-million-barrel Zama field in the US Gulf of Mexico, contingent upon its partner Talos Energy accepting Pemex as an operator, according to Reuters, which cited Pemex CEO. In 2017, the offshore field was found by Talos and its partners Premier Oil and Wintershall Dea. Pemex was awarded permission to operate the field by Mexico’s energy ministry (SENER) in 2016.
According to the source, negotiations between the two businesses have reached an advanced level, and if a deal is made, Talos (NYSE:TALO) would acquire EnVen using primarily or entirely stock. Talos (NYSE:TALO) has developed to become one of the major GoM operators and has utilized periodic acquisitions to increase its scale, including the 2018 purchase of Stone Energy.
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