Talos Energy Inc. said Dec. 27 it has completed its fall 2022 semi-annual redetermination process, with its current borrowing base raised 36% to $1.5 billion from $1.1 billion. 

The borrowing base increase will be effective upon the closing of Talos’ $1.1 billion acquisition of EnVen Energy Corp. expected in February 2023. Talos’ liquidity is expected to be $1 billion with no debt maturities until 2026 upon the EnVen acquisition’s closing.

The company said its bank commitments will also increase by approximately 20% to $965 million from $806 million. The maturity of the facility will also be extended from November 2024 to March 2027. 

This season’s redetermination process brings favorable interest rate margins, an increased letters of credit sublimit, flexibility to focus on carbon capture and sequestration (CCS) and favorable administrative terms, the company said in the release.

“The increased commitments and extended maturity to 2027 expected upon closing of the EnVen acquisition demonstrate the strong support of our lender group as we continue to grow our upstream business, expand our CCS portfolio and mature our key catalysts,” said Shane Young, Talos executive vice president and CFO. 

Talos is an E&P company currently in the U.S. and offshore Mexico focused on upstream oil and gas production and CCS development.