Talos Energy is Barely Five Years Old but is Already Making Shock Waves in the Oil and Gas Industry

Some of the largest companies in the world operate in the oil and gas industry. Considering the fact that oil is the most traded commodity on earth, this is an understandable state of affairs. Additionally, since the oil and gas industry is significantly capital-intensive, one rarely sees new players join the market, and even when they do, they typically decades to properly establish themselves. One company that has, however, gone against this typical trend is Houston-based, Talos Energy. Despite only being formed five years ago, the company is one of the fastest growing in the operational area of offshore oil extraction and development.

Much of Talos Energy’s recent success stems from its investment in an offshore oil well in Mexico. In fact, Talos is one of the first foreign companies to own and operate an offshore oil well in Mexican territory for the last eight decades. For long, the Mexican government had been jittery about letting non-Mexican oil companies get involved with its oil and gas resources. Therefore, the fact that Talos was chosen to be among the first exceptions to Mexico’s long-held fear shows that it is indeed a reputable and trustworthy organization.

Talos Energy’s operations in Mexico have also greatly been helped by the fact that the company has a number of partners. It owns the Mexican well, Zama-1 in collaboration with the Mexican company Sierra Oil and Gas, and the British company, Premier Oil Plc. The well is estimated to hold oil reserves in the region of 100 to 500 million barrels. Talos, therefore, stands to make a healthy profit once drilling is complete as its total stake in the well is 35 percent.

Talos Energy is quite small compared to the major players in the global oil and gas industry. The company has achieved a lot with the $600 million equity injection that was used to form it in 2012. Its consistent positive returns have recently also allowed the company to get into a finance-sourcing deal with Apollo Global Management. Moving forward, therefore, the company will have greater flexibility to makes moves similar to the ones it has made in Mexico.

To Learn More : www.facebook.com/talos.energy/

Drilling Starts for Talos Energy

In the world of oil and gas, it’s rare that a company would have the complete control over a country’s industry. However, that was the case in Mexico for over 80 years. Pemex was owned and controlled by the government, which meant that others couldn’t invest. Mexico wanted to protect the profits for the people to pay tax to the government. However, because of Pemex’s failure to invest in the right technologies, and the recent economic climate, Mexico opted to open their gates again to outside investment. It’s the first time this has happened since 1938.

The three companies that bid and won are Talos Energy, Premier Oil, and Sierra Oil. The three firms will share the roles in the project. Talos will take over as the operator because they have the most experience in this region. It is sunk in the Sureste Basin off the coast of the Mexican state of Tabasco. The well is predicted to run through 100 million up to 500 million barrels of oil, an impressive feat according to analysts.

Success is no stranger for Talos Energy, LLC. The Houston company had equity backed funding when it launched back in 2012. Phoenix Holdings is the parent company and they knew they would need a lot of cash to keep things moving. That’s why they bought out a competitor called Helix Energy solutions for $620 million. And since then, their revenue has skyrocketed to a whopping $500 million per year. They went from about 15 to some 120 employees in their offices.

Many of the workers comment on how their pay packages is better than most in the industry. As the number one small business in their industry according to certain awards, they have excelled in providing profits to the ordinary worker, which improves morale and boosts the bottom line. Additional perks, like casual Fridays and daycare facilities in the office building add layers to the joy of working there. Management has said they want to continue to offer innovative solutions to bring returns for their investors and look forward to getting more natural oil and gas in the pipeline.

Learn More : http://www.talosenergyllc.com/about-us/