Talos Energy has struck a number of deals worth $640m (£488m) to expand its footprint in the US Gulf of Mexico.
The combined figure covers transactions with ILX Holdings, Castex Energy and Venari Resources for assets which produced 19,000 in the third quarter of 2019.
The assets will take Talos’ daily production up to 72,000 barrels per day and have proven and probable reserves of 68million barrels of oil equivalent.
Talos said it includes more than 40 identified exploration prospects across 700,000 gross acres.
A purchase and sale agreement has been executed with Venari, while deals with ILX and Castex are expected to be completed in the first quarter of 2020.
Chief executive Timothy Duncan said: “”The acquisition of these assets significantly strengthens Talos’s position as a basin leading independent E&P company, providing increased scale and free cash flow, greater operational diversity and broader optionality in future growth.
“What makes this transaction unique is the combination of high-margin production and a deep portfolio of prospects.
“As we consider the full scale of the pro forma business, the combined cash flow profile and the significant exploration portfolio, we are excited about the tremendous potential to build long-term value, not only from these assets alone but from the optimization of the combined asset base, high-grading of investment opportunities, follow-on business development and M&A activity.”
The deal comes after the Us independent struck deals with BP and ExxonMobil in September to expand its presence in the Gulf of Mexico.