Page 11 - NorthAmOil Week 07 2023

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Talos completes acquisition of EnVen

GULF OF MEXICO HOUSTON-BASED oil and gas company Talos infrastructure and overlapping acreage into
Energy has completed its acquisition of EnVen our portfolio, strengthening our position as a
Energy. The deal doubles Talos’ deepwater facil- safe, reliable, responsible operator in the Gulf
ity footprint. of Mexico,” said Talos’ president and CEO,
As a result of the $1.1bn acquisition, Talos Timothy Duncan.
now has almost 126.4mn shares of common “The added scale and greater free cash flow
stock and a market capitalisation of around generation ability also allows us to be even more
$2.5bn, based on its closing share price on Feb- competitive in our carbon capture and seques-
ruary 10, 2023. tration business,” he added.
Talos shareholders now own about 66% of The company said it would detail its plans
the resulting company while the equity holders when it provided its 2023 financial and oper-
of EnVen own 34%. ational guidance to investors along with its
Talos is a technically driven independent fourth-quarter and full-year 2022 earnings
exploration and production company, with report on February 28.
operations in the US Gulf of Mexico and offshore Talos is one of the largest independent opera-
Mexico. It is also involved in carbon capture and tors in the US Gulf, with production operations,
storage (CCS) on the Gulf Coast. EnVen, a pri- prospects, leases and seismic databases spanning
vately owned firm, operates mostly in the deep- both deep and shallow waters. In deep water,
water US Gulf. before the acquisition it had roughly 162mn bar-
Talos’ senior management team will lead the rels of oil equivalent (boe) of reserves, average
combined company, and two directors from daily production of 65,000 barrels of oil equiv-
EnVen have been appointed to the board of alent per day (boepd), and 1.2mn gross acres
directors. (4,856 square km) under lease.
“We are excited to close the EnVen trans- EnVen produces around 24,000 boepd, which
action, which adds significant scale and diver- is more than 80% oil-weighted with over 95%
sity to our business and integrate[s] these coming from the deepwater Gulf. It operates five
high-margin, oil-weighted assets, operated major deepwater facilities.™

Thailand’s Banpu to pursue US shale gas

US BANPU, the largest coal producer in Thailand, products such as gas is intensifying.
has reaffirmed its plans to boost investment Banpu has previously said that BKV would
in US shale gas as it moves into lower-carbon seek to invest in upstream US gas businesses,
resources. while another subsidiary, Banpu Power, would
“There remains a vast potential of power pursue investments in gas-fired power plants.
and natural gas business in the US that can help In May 2022, BKV agreed to buy natural gas
Banpu achieve its shift away from coal,” Banpu’s upstream and midstream operations in the Bar-
CEO, Somruedee Chaimongkol, told Bloomb- nett shale region in Texas from XTO Energy and
erg in an interview on February 13. Barnett Gathering, both subsidiaries of Exxon-
The Bangkok-based company will list BKV, Mobil, for $750mn.
its US natural gas unit, on the New York Stock BKV acquired around 160,000 total net acres
Exchange (NYSE) later in 2023. The timing has (647 square km) primarily in Tarrant, Johnson
not yet been decided, said Somruedee. Natural and Parker counties, and additional smaller
gas prices have been unstable. positions in Jack, Wise, Denton, Erath, Hood
Somruedee has previously said that Banpu and Ellis counties. The assets included low-de-
would cut revenue that it generates from coal cline wells and high-average working interests of
from around two-thirds now to 50% by 2025, about 93% in more than 2,100 wells with opera-
replacing the income partly with that from nat- torship positions.
ural gas. Banpu will also delve further into power The transaction also included roughly 750
production and green technologies such as car- miles (1,207 km) of gathering pipelines, com-
bon capture and storage (CCS) and solar. pression and processing midstream infrastruc-
The economy in Thailand, the second larg- ture. The acquisition was completed in July
est in South-east Asia, is slowing, prompting 2022.
Thai companies to look overseas for invest- Banpu had previously purchased gas busi-
ment opportunities. Additionally, the pressure nesses in the Barnett and Marcellus shale plays
on companies globally to reduce their carbon with a total production capacity of 700mn cubic
emissions, such as those from coal, to cleaner feet (19.8mn cubic metres) per day.™

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