Talos Energy Turns Risks Into Success

Tim Duncan, 45 years old of Texas, was the son of an oil company man and that took him to other places than his home in Texas. He grew up In Texas, Florida, and Egypt. Duncan is an endless source of energy and not averse to taking a risk. During Hurricane Harvey’s barrage on Houston and Tim Duncan’s neighborhood of Kingwood, Duncan wasn’t only focused on helping his wife, son, and dogs avoid the floodwaters with the help of FEMA he was worried about making a risky merger come through.Duncan isn’t scared of taking a risk and making it pay off. One of Talos’ largest asset was known as the Typhoon field and later renamed The Pheonix Field.

The Pheonix field is located 165 miles from the City of New Orleans and was first developed by Chevron which established a production platform that was tethered to the seafloor after drilling. The force of Hurricane Rita capsized the Typhoon platform, and it drifted off for approximately 60 miles across the gulf. Talos took on the job of cleaning up after the Typhoon platform drifted. Talos pumps 16,000 barrels daily from the Pheonix field into a ship called the Helix Producer. Talos examined the seismic data and found more oil beneath the old reservoirs increasing the output at the Pheonix field.  Talos’ risk in taking over the Pheonix field paid off.

The creation of Talos was itself a risk when Duncan used 600 million dollars of equity funding from Riverstone and Apollo to create Talos Energy. On that day when Hurricane Harvey hit Houston Tim Duncan was worried about the merger that he had been working on for four months. If he succeeded with the merger, his own privately held company of Talos Energy would merge with Stone Energy. It Was a $2.5 billion dollar merger and also a huge risk to merge with a publicly traded company that was essentially bankrupt. But Duncan was willing to take the risk and if he won it would make Talos Energy a public entity, and he wouldn’t have to go through the expense of a public offering. It took him weeks of working late at night but Tim Duncan succeeded, and the merger went through. Now, most of the Talos assets will be located in the Gulf of Mexico.