QuarterNorth is a privately held U.S. Gulf of Mexico exploration and production company with ownership in several offshore fields.
QuarterNorth Energy will receive about 24.8 million shares of Talos's common stock and about $965 million in cash.
More than a dozen companies including Chevron (CVX.N) and Repsol (REP.MC) had quit offshore oil and gas exploration areas in Mexico last year after disappointing results. Only a handful of companies had made significant finds in the areas which included Talos.
The Houston-based Talos said that the acquisition will add about 30 thousand barrels of oil equivalent per day (Mboe/d) for the full current year and adds about 69 million barrels of oil equivalent (MMBoe) in proved reserves.
"The addition of QuarterNorth's overlapping deepwater portfolio with valuable operated infrastructure will increase Talos's operational breadth and production profile while enhancing our margins and cash flow," said Talos CEO Timothy S. Duncan.
The company said it expects annual run-rate synergies of approximately $50 million by year-end, 2024.
The deal is expected to close by the end of first quarter of current year.
