Talos Energy reaches pact with Hokchi to cross-assign interests
Talos Energy Inc. announced that the company entered into a transaction with Hokchi Energy, S.A. de C.V., a subsidiary of Pan American Energy LLC, to cross assign the company's Participating Interest in Block 2 and Hokchi's PI in Block 31, both in the Sureste Basin offshore Mexico. Under the agreed conditions for the swap, Talos will assign a 25% PI in Block 2 to Hokchi in exchange for a 25% PI in Block 31, which is immediately to the south of Block 2. Once the transaction is completed, Hokchi will be the operator of both blocks and Talos will own a 25% PI on Block 2 and a 25% PI on Block 31. The transaction is subject to approval by the Mexican oil & gas regulator, the National Commission of Hydrocarbons, and has not yet been approved by CNH. Talos was awarded the Production Sharing Contract for Block 2 in September of 2015 as part of the competitive bidding process in the historic Round 1.1 auction. Hokchi was awarded the PSC for Block 31 as part of a competitive bidding process on Round 3.1 in June of 2018. Both blocks had multiple bids.