Talos Energy Inc. says that it has closed its previously announced acquisition of certain deepwater “Gulf of America” assets from Shell Offshore Inc., alongside an affiliate of Ridgewood Energy Corporation.

Talos said that the final net cash purchase price at closing on Sept. 22, 2026, was $420 million, including a previously escrowed $42.5 million deposit, and remains subject to customary post-closing adjustments.

The assets include a 50% working interest and operatorship in the Coulomb field and a 25% non-operated working interest in the bp-operated Na Kika platform and four associated fields: Kepler, Ariel, Fourier, and Herschel.

Talos first announced a definitive agreement on June 30, 2026, to jointly acquire the assets for cash consideration of $850 million net to Talos, subject to customary purchase price adjustments. Based on estimated interim cash flow from the July 1, 2025, effective date, the company had expected final net cash consideration of approximately $450–$500 million, excluding the deposit.

Working interests in the Na Kika platform and associated fields had been subject to a 30-day preferential right by bp affiliates. That right was not exercised, and Talos acquired the full package described above.

First-quarter 2026 average production for the acquired interests was approximately 16 MBoe/d (~77% oil). The assets add approximately 23 MMBoe of proved reserves and 10 MMBoe of probable reserves, based on an NSAI SEC year-end 2025 reserves report, net to Talos and net of plugging and abandonment.

Other commercial terms include a 50% upside sharing agreement effective at closing through year-end 2027, subject to commodity-price-based thresholds if realized price exceeds $60/bbl, as well as certain other contingencies and agreements.

Talos said the deal enhances scale with low-cost, high-margin, oil-weighted production expected to be immediately accretive to key financial metrics; increases reserves and production with future infrastructure-led exploration (ILX) upside; and is funded through a combination of cash on hand and debt while maintaining balance-sheet strength.

In connection with the transaction, Talos secured $150 million of incremental commitments from existing lenders, increasing its borrowing base from $700 million to $850 million, effective upon closing.

President and CEO Paul Goodfellow said at announcement: “We are pleased to announce the acquisition of these high-quality deepwater assets directly aligned with Pillar Two of our strategy. The bolt-on is highly accretive, materially enhances free cash flow, and includes Infrastructure-Led Exploration opportunities where our field life extension track record can unlock value beyond current reserves. We also see a clear pathway for operated development activity to compete for capital beginning in 2027.”

At closing he added: “The closing of this transaction marks another important step in executing our strategy to build a long-lived, scaled portfolio and become the leading pure-play offshore E&P. These high-quality, oil-weighted assets immediately enhance our scale, increase free cash flow generation, improve our margins, and provide infrastructure-led growth opportunities that leverage our core strengths in the Gulf of America.”

Executive Vice President and CFO Zach Dailey said: “This strategic transaction in the Gulf of America is expected to be immediately accretive to key financial metrics and deliver long-term value while maintaining balance sheet strength and preserving financial flexibility. Importantly, the increased borrowing base reflects strong confidence from our lenders in the quality of the acquired assets, Talos’s base business, and the financial framework that underpins our strategy. On a pro forma basis, we expect to maintain leverage consistent with our financial framework.”

Third-quarter 2026 results will include contributions from the acquired assets from the closing date through quarter-end, with the assets fully consolidated beginning in the fourth quarter of 2026. Updated full-year 2026 guidance will be provided with the company’s third-quarter 2026 earnings release.

For its part, Shell affirmed its interest in the US Gulf: “The Gulf of America is one of our highest-value basins, and we are actively shaping our portfolio to ensure our upstream business continues to be resilient and increasingly competitive,” said Peter Costello, Shell’s Upstream President. “We remain focused on sustaining our material liquids production into the next decade.”