The acquisition, announced in January 2024, involved a transaction comprising 24.8 million shares of Talos Energy's common stock and approximately $965 million in cash. As a result, Talos Energy now has approximately 183 million shares of common stock outstanding, including the 24.4 million shares issued to QuarterNorth shareholders. Joseph A. Mills, QuarterNorth's designee, has been appointed to Talos Energy's board of directors.

Talos Energy's President and CEO, Timothy S. Duncan, expressed enthusiasm about closing the deal ahead of schedule. He emphasized the company's focus on operational execution and maximizing synergies from the transaction. The addition of QuarterNorth's predominantly operated, oil-weighted deepwater assets and related infrastructure is expected to enhance Talos Energy's ability to generate substantial free cash flow while expanding its growth opportunities.

The QuarterNorth acquisition contributes approximately 30,000 barrels of oil equivalent per day (mboe/d) to Talos Energy's production for the full year 2024, with an oil percentage of about 75%. The assets include proven reserves of around 69 million barrels of oil equivalent (mmboe) with a PV-10 of $1.7 billion. These assets feature high margins, low production decline, and low reinvestment rate requirements for sustainability.

Fire at Gabon offshore platform: 5 dead Fire at Gabon offshore platform: 5 dead

The acquired assets, consisting of six fields, are now part of Talos Energy's portfolio. Notably, Talos Energy gains operational control of the Katmai discovery in the Green Canyon region, producing an estimated combined 27 mboe/d gross from two early-life wells. The company anticipates the field's gross production to average over 34 mboe/d based on a field development plan, including two future well locations and a facilities upgrade project scheduled for early 2025.

Talos Energy sees significant development potential in QuarterNorth's interests in the Big Bend, Galapagos, Genovesa, and Gunflint fields. This acquisition follows Talos Energy's recent production commencement from two deepwater discoveries in the U.S. Gulf of Mexico, as well as the addition of another commercial oil and natural gas discovery in the Gulf, slated for development as a tie-back to the Prince platform.