At this stage in the commodities cycle, it is not necessary for investors to prospect for unproven resources in unstable jurisdictions with uncertain cash flow timing. Consequently, from a risk-reward perspective, Talex typically pursues opportunities satisfying the following criteria:
Immediate or Near-Term Cash Flow
Projects must be currently producing cash flow (possibly with a need for additional capital to scale up) or be capable of achieving production within 12 months following investment.
2×-3× Target Returns and Upside Growth Potential
Talex targets projects with cash-on-cash returns of at least 2×-3× over a 5-7 year period. In addition, Talex focuses on opportunities with potential for additional upside over the long term through monetization of resources that have not yet been well-defined or through operational improvements.
Resource Type
Conventional & unconventional oil & gas, as well as “heavy oil”.
Defined Resource/No Exploration Risk
Investors do not need to assume exploration risk at this stage in the cycle. Resources need to be well-defined.
Stable Jurisdictions
Talex focuses only on North America and Europe for its oil & gas projects.
Excellent Management Teams
Talex focuses on experienced and committed management teams with proper performance incentives. We do not engage in “hostile takeovers”.