NEW YORK Aug 19 Freepoint Commodities LLC said
on Monday that, together with two other partners, it bought two
offshore oil and gas producing blocks from an Exxon Mobil Corp
affiliate and W&T Offshore Inc for $110 million.
Through the financing of a company called Whistler Energy
II, LLC, it bought Green Canyon Block 60 and 18, around 150
miles (241 km) offshore Louisiana. Production at Block 18, which
came with a platform, peaked at 30,000 barrels per day (bpd).
Freepoint has the right to serve as the physical offtaker of
existing and future oil production.
Freepoint's two partners were affiliates of Apollo Global
Management LLC and Summit Partners Credit Advisors LP.
In March, Freepoint acquired 66 natural gas producing wells
from a unit of Canadian exploration and production company
Bucking Horse Energy Inc while in June it closed a coal
prepayment financing and offtake transaction with Covenant Coal
Stamford, Connecticut-based Freepoint is among a group of
energy merchants that have bought physical assets such as wells
and power plants as tighter regulations have pushed banks out of
the physical commodities business.
Commodity traders have flocked to merchants like Freepoint
and Castleton Commodities International, also based in Stamford,
and larger traders such as Vitol and Glencore
in the last two years.
Freepoint was started by former RBS Sempra Commodities
executives with private equity in 2011. Royal Bank of Scotland
had to divest its portion of the joint venture with
Sempra after a British government bailout.