Helix Energy Solutions Group, Inc. (HLX: Quote) has entered into a definitive agreement to sell Energy Resource Technology GOM, Inc. or ERT, its oil and gas subsidiary, to Talos Production LLC, a wholly owned subsidiary of Talos Energy LLC, a privately held Houston-based oil and gas company.
The company stated that the selling price involves a base purchase price of $610 million plus contingent consideration in the form of overriding royalty interests on ERT's Wang exploration prospect as well as certain other exploration prospects.
In addition, the parties have agreed to adjust the purchase price at closing, upward or downward, depending upon the results of the Wang exploration well.
Helix Energy said the estimated value of the transaction is about $700 million if the Wang exploration prospect is successful and meets expectations. If the Wang exploration prospect is determined to be unsuccessful, the estimated value of the transaction to Helix is closer to $600 million.
ERT is currently drilling the Wang well and expects to evaluate the results in the next few days.
by RTT Staff Writer
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