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Talos Energy Inc. entered into a farm-out agreement to acquire a 50% working interest in the Block 29 offshore Mexico…
TALOTalos Energy Inc.
Talos Energy Inc. entered into a farm-out agreement to acquire a 50% working interest in the Block 29 offshore Mexico development, operated by Repsol. The transaction includes a contingent $30 million payment at final investment decision, a $20 million cash carry on the next exploration well, and reimbursement of pre-closing costs. Concurrently, the company amended its credit agreement to increase the capacity for restricted foreign subsidiaries to incur up to $350 million of project financing indebtedness for Mexican assets by $50 million and increased the maximum Consolidated Total Debt to EBITDAX Ratio for Block 29 investments from 1.25 to 1.50. Talos Energy Inc. is an independent energy company focused on exploration and production in the Gulf of America and offshore Mexico.