Talos Energy announced that it has entered into a definitive agreement to jointly acquire certain deepwater assets in the Gulf of America from Shell Offshore alongside an affiliate of Ridgewood Energy.
The transaction includes $850 million of cash consideration net to Talos, subject to customary purchase price adjustments.
Talos expects its final net cash consideration to be approximately $450 million to $500 million, based on estimated interim cash flow from the acquired assets from the July 1, 2025 acquisition effective date.
The acquired assets include a 50% working interest and operatorship in the Coulomb field, which is owned exclusively by Shell. And the acquisition also includes a 25% non-operated working interest in the BP-operated Na Kika platform and four associated fields: Kepler, Ariel, Fourier, and Herschel.
Upon executing the definitive agreements, Talos provided a $42.5 million deposit in escrow, which will be credited at closing. The Na Kika platform and associated field interests are subject to a 30-day preferential right by BP affiliates.
If that right is exercised, Talos would only acquire the 50% working interest and operatorship in the Coulomb field. The assets Talos is acquiring produced approximately 16 thousand barrels of oil equivalent per day in the first quarter of 2026. That production was approximately 77% oil.
The assets include approximately 23 million barrels of oil equivalent of proved reserves and 10 million barrels of oil equivalent of probable reserves, net to Talos and net of plugging and abandonment obligations.
Talos said the acquisition adds low-cost, high-margin, oil-weighted production and is expected to be immediately accretive to key financial metrics.
The company also said the assets include operated infrastructure-led exploration opportunities that could support future growth.
The acquisition is expected to close by the end of 2026, subject to customary closing conditions.
Those conditions include the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and the expiration of applicable preferential purchase rights for the Na Kika interests.
Talos expects to fund the acquisition through a combination of cash on hand and debt. In connection with the transaction, the company secured $150 million of incremental commitments from existing lenders.
That increases Talos’ borrowing base from $700 million to $850 million, subject to and effective upon closing the acquisition.
Talos also provided an operations update, noting that it successfully completed the Genovesa workover and returned the well to production late in the second quarter of 2026.
The company also noted that the first Monument development well was drilled to a total measured depth of 32,250 feet and encountered 245 feet of net pay, confirming pre-drill expectations.
Drilling is set to begin on the second development well, followed by completion operations on both wells. And first oil from Monument is expected by late 2026.
Talos expects to update its 2026 operating and financial guidance for the acquisition after closing.
Support: Greenhill, a Mizuho affiliate, served as exclusive financial advisor to Talos on the acquisition.
KEY QUOTES:
“We are pleased to announce the acquisition of these high-quality deepwater assets directly aligned with Pillar Two of our strategy. The bolt-on is highly accretive, materially enhances free cash flow, and includes Infrastructure-Led Exploration opportunities where our field life extension track record can unlock value beyond current reserves. We also see a clear pathway for operated development activity to compete for capital beginning in 2027, further supporting long-term value creation as we continue to advance our strategy to build a long-lived, scaled portfolio and become the leading pure-play offshore E&P.”
Paul Goodfellow, President and CEO of Talos Energy
“This strategic transaction in the Gulf of America is expected to be immediately accretive to key financial metrics and deliver long-term value while maintaining balance sheet strength and preserving financial flexibility. Importantly, the increased borrowing base reflects strong confidence from our lenders in the quality of the acquired assets, Talos’s base business, and the financial framework that underpins our strategy. On a pro forma basis, we expect to maintain leverage consistent with our financial framework.”
Zach Dailey, EVP and CFO of Talos Energy
