Hurricane Harvey flooded Tim Duncan’s Texas neighborhood. He took his wife, son and dogs into a FEMA rescue boat. The Chief Executive of Talos Energy has been planning a merger for $2.5 billion with Stone Energy. The merger completed in May leaving Duncan in charge of $900 million in assets mostly in the Gulf of Mexico. The drilling platforms in this area cost hundreds of millions with the possibility of a catastrophe always present. Talos takes chances while producing more than 48,000 barrels of oil each day.
Tim Duncan grew up in Florida, Texas and Egypt as the son of an oil man. The biggest asset Talos has is the Phoenix field. Chevron developed the field, installed platforms and drilled wells. The Typhoon platform was capsized in 2005 by Hurricane Rita and drifted across the gulf nearly sixty miles. Talos cleaned up the mess and now uses a unique ship to pump 16,000 barrels every day from Phoenix. According to the seismic data Phoenix will grow. Talos will inherit the Pompano platform from BP along with several other prospects for $200 million.
Duncan assisted with the Gryphon Exploration launch in 2000 to acquire the High Island 52 shallow water oil field. The drilling of additional wells boosted the output prior to his selling to Woodside Petroleum. He was one of the founders of Phoenix Exploration in 2006. He teamed with his partner in discovering the Belle Isle Field in Louisiana before selling in 2011 to the Apache Corp. By this time the industry was reeling from the drilling moratorium imposed by the Obama administration due to the BP catastrophe.
After the Permian Basin, the gulf is the nation’s largest oil province with 1.6 million barrels pumped each day. In excess of $3 billion of the oil royalties go to the U.S. Treasury every year because the majority of the resources are located in federal waters. More federal waters have been opened by the Trump administration for leasing. Talos represents a good future on the Mexican area of the gulf. With Tim Duncan leading the company the future is expected to be bright.