Talos Energy Inc has announced the execution of a definitive agreement to jointly acquire certain deepwater assets in the Gulf of America from Shell Offshore Inc, alongside an affiliate of Ridgewood Energy Corporation.
"We are pleased to announce the acquisition of these high-quality deepwater assets directly aligned with Pillar Two of our strategy. The bolt-on is highly accretive, materially enhances free cash flow, and includes Infrastructure-Led Exploration opportunities where our field life extension track record can unlock value beyond current reserves. We also see a clear pathway for operated development activity to compete for capital beginning in 2027, further supporting long-term value creation as we continue to advance our strategy to build a long-lived, scaled portfolio and become the leading pure-play offshore E&P," said Talos President and Chief Executive Officer, Paul Goodfellow.
Talos Executive Vice President and Chief Financial Officer, Zach Dailey said, "This strategic transaction in the Gulf of America is expected to be immediately accretive to key financial metrics and deliver long-term value while maintaining balance sheet strength and preserving financial flexibility. Importantly, the increased borrowing base reflects strong confidence from our lenders in the quality of the acquired assets, Talos's base business, and the financial framework that underpins our strategy. On a pro forma basis, we expect to maintain leverage consistent with our financial framework."
The acquisition holds highly accretive to key financial metrics for Talos as it will ensure low-cost, high-margin, oil-weighted production. It can potentially add proved reserves of approximately 23 million barrels of oil equivalent (MMBoe) and 10 MMBoe of probable reserves, with additional operated Infrastructure‑Led Exploration (ILX) opportunities supporting future growth. Production for the first quarter 2026 was 16 thousand barrels of oil equivalent per day (MBoe/d), ~77% oil.
In line with its previous guidance, Talos has also completed the Genovesa workover and returned the well to production late in the second quarter of 2026.
The first Monument development well was successfully drilled to its total measured depth of 32,250 feet and encountered 245 feet of net pay confirming pre-drill expectations. Drilling is set to commence on the second development well followed by completion operations on both wells. First oil is expected by late 2026.
The Company expects to update its 2026 operating and financial guidance for the Acquisition following closing.
