Talos Energy, Pan American Join Forces Offshore Mexico

Talos Energy Inc. (NYSE: TALO) is joining forces with a subsidiary of Argentina’s Pan American Energy LLC to accelerate exploration efforts offshore Mexico.

Houston-based Talos said Oct. 17 it had entered a transaction with Hokchi Energy SA de CV, a Pan American subsidiary, to cross-assign the company’s participating interest in Block 2 and Hokchi’s interest in Block 31, both in the Sureste Basin offshore Mexico.

“We see the participating interest swap agreement as a good move in that it provides Talos with broader exposure to the basin while average drilling capital per prospect is lowered,” said analysts with Capital One Securities Inc. in a research note on Oct. 18.