Talos Energy closed its acquisition of QuarterNorth Energy, adding scale in the Gulf of Mexico.

Talos estimates QuarterNorth’s average daily production for 2024 will come in at an average 30,000 boe/d (75% oil), including planned downtime.

QuarterNorth’s producing assets include six major fields that are approximately 95% operated and 95% in deepwater.

Talos announced the $1.29 billion cash-and-stock acquisition of QuarterNorth in January.

“We are excited to close this important transaction ahead of schedule as we focus on operational execution and acceleration of synergies from the transaction,” said Talos President and CEO Tim Duncan in a March 4 news release.

“We expect the addition of these predominantly operated, oil-weighted deepwater assets and related infrastructure will enhance our ability to consistently generate substantial free cash flow while expanding our portfolio of growth opportunities,” Duncan continued.

RELATED: Talos Energy to Acquire QuarterNorth for $1.29 Billion

Talos Closes $1.29B Acquisition of GoM E&P QuarterNorth
Talos expanded its Gulf of Mexico footprint with the cash-and-stock acquisition of QuarterNorth Energy. (Source: Talos investor presentation)

Talos issued approximately 24.4 million shares of common stock to QuarterNorth shareholders as equity consideration of the transaction. The deal also included a $965 million cash payment.

After completing the acquisition, Talos has approximately 183 million shares of outstanding common stock.

QuarterNorth was the successor company to Fieldwood Energy, which emerged from bankruptcy in 2021.

RELATED: BSEE Releases Investigation Findings from Fieldwood GoM Oil Spill