Talos Energy Inc. has completed the acquisition of deepwater oil and gas assets in the Gulf of America. The transaction, finalized on September 22, 2026, involves Talos Ocho Energy LLC acquiring a 50% working interest and operatorship in the Coulomb field. Additionally, Talos Ocho acquired a 25% non-operated working interest in the BP-operated Na Kika platform and four associated fields: Kepler, Ariel, Fourier, and Herschel.
The acquisition was executed alongside an affiliate of Ridgewood Energy Corporation. The unadjusted aggregate cash purchase price was $1.7 billion, subject to customary adjustments. The economic effective date of the transaction was July 1, 2025. Talos Ocho paid a closing cash consideration net to the company of $420 million, which includes a previously escrowed deposit of $42.5 million.
In connection with the deal, Talos assumed its share of future decommissioning obligations. The company is required to provide financial assurance to secure these obligations, with an initial security amount estimated at approximately $195.5 million. This security was satisfied through surety bonds as of the closing date. Commencing on December 31, 2032, 50% of the security amount must be provided in cash escrow.
Talos also amended its credit facility to support the acquisition. The borrowing base was increased from $700 million to $850 million, and the letter of credit sublimit was raised from $250 million to $300 million. The company expects to issue approximately $49 million in letters of credit in conjunction with the closing.
Talos Ocho has agreed to guarantee the obligations of Talos Production Inc. under its senior secured notes. This includes the execution of a first supplemental indenture for the 8.000% Second-Priority Senior Secured Notes due 2034 and a second supplemental indenture for the 9.375% Second-Priority Senior Secured Notes due 2031.
