Freepoint Commodities Finances Acquisition of Offshore Oil and Natural Gas
Whistler Energy II, LLC acquires Gulf of Mexico production blocks and platform
in Green Canyon 18 & 60
STAMFORD, Conn., Aug. 19, 2013
STAMFORD, Conn., Aug.19, 2013 /PRNewswire/ --Freepoint Commodities LLC
("Freepoint") today announced that its subsidiary Commerce Oil LLC, together
with affiliates of Apollo Global Management, LLC and Summit Partners Credit
Advisors, L.P., closed a transaction to provide more than $110 million of
acquisition and redevelopment capital to Whistler Energy II, LLC
("Whistler"). This financingenabled Whistler to acquire 100 percent of the
working interests in two oil and natural gas producing blocks in the Gulf of
Mexico (Green Canyon 18 & 60) from an ExxonMobil affiliate (NYSE: XOM) and W&T
Offshore, Inc. (NYSE: WTI). Whistler additionally acquired the GC 18 offshore
production platform in the transaction. Committed funding by Freepoint will
also finance the field redevelopment program to be carried out by Whistler's
veteran offshore oil and gas management team led by CEO Scott Frankel.
The GC 18 platform is situated 150 miles offshore Louisiana in 750 feet of
water. Historic production rates peaked at 30,000 barrels per day. Freepoint
has the right to serve as the physical offtaker of existing and future oil and
natural gas production from the platform. This investment, like Freepoint's
earlier acquisition of natural gas wells in Wyoming, reflects Freepoint's
strategy to invest in hydrocarbon producing assets.
"This transaction is another example of how Freepoint is well positioned to
provide both financing and physical trading capabilities to the upstream
energy sector," said Brian Cumming, Managing Director and Head of Structured
Finance for Freepoint.
"I view this partnership as a perfect opportunity to redevelop a world-class
asset with our new partners," said Scott Frankel, CEO of Whistler.
Evercore acted as Freepoint's exclusive financial advisor for this
Sutherland Asbill & Brennan LLP acted as Freepoint's legal advisor.
About Freepoint Commodities LLC and Commerce Oil LLC
Commerce Oil LLC is a subsidiary of Freepoint Commodities LLC, which was
founded by former Sempra Energy Trading executives. Freepoint Commodities LLC
is based in Stamford, CT and launched multiple platforms in the energy and
metals markets starting in March 2011. Management, employees and private
equity funds managed by Stone Point Capital have provided the initial equity
capital for Freepoint Commodities LLC and its subsidiaries, including Commerce
SOURCE Freepoint Commodities LLC
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