Whistler Energy has acquired two oil and natural gas producing blocks in the Gulf of Mexico from Exxon Mobil and W&T Offshore for more than $110 million. The financing for the buy was provided by Apollo Global Management, Freepoint Commodities and Summit Partners Credit Advisors. Evercore served as Freepoint’s exclusive financial advisor for this transaction.
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 financing enabled 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 transaction.
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 Oil LLC.