Freepoint finances acquisition of offshore assets

Freepoint Commodities LLC

Freepoint Commodities LLC reports that its subsidiary Commerce Oil LLC, together with affiliates of Apollo Global Management LLC and Summit Partners Credit Advisors LP, closed a transaction to provide more than $110 million of acquisition and redevelopment capital to Whistler Energy II LLC. 

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 and 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.

Evercore acted as Freepoint's exclusive financial advisor for this transaction. Sutherland Asbill & Brennan LLP acted as Freepoint's legal advisor.

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