FourPoint Energy LLC raised more than $1 billion of committed capital, including $200 million in direct private equity and $800 million in term debt from EIG Global Energy Partners LLC and funds advised by GSO Capital Partners LP, the company said Jan. 30. Additionally, FourPoint Energy entered with JPMorgan Chase Bank, N.A. (NYSE: JPM) and Wells Fargo Bank, N.A. (NYSE: WFC) into a $250 million credit facility, the company said.
Regarding the credit facility, Jefferies LLC was sole financial advisor, and JPMorgan Securities LLC was sole lead arranger and book runner, the company said. Andrews Kurth LLP was FourPoint’s legal advisor, the company added.
Simultaneously, the company acquired producing, undeveloped oil and natural gas properties, including midstream assets, in the western Anadarko Basin from affiliates of EnerVest Ltd., FourPoint said. FourPoint purchased an ownership stake in the Laredo Petroleum Inc. (NYSE: LPI) and SM Energy Co. (SM) acquisitions, closed by EnerVest in the second half of 2013, for $268 million, the company said.
This includes interest in more than 1,200 producing wells with net production of more than 35 million cubic feet equivalent per day (MMcfe/d), the company added.
FourPoint and Enervest also entered into a joint development agreement (JDA) and area of mutual interest agreement (AMI) to own, operate and develop western Anadarko Basin oil and natural gas properties, the company added. The companies will each hold 50% interest in the AMI, with Enervest as operator, FourPoint said.
They will share all future lease acquisitions in the area, which covers 14 Texas and Oklahoma counties, the company noted. They have more than 90,000 net acres in the Basin, FourPoint added.
FourPoint Energy is a privately-held acquisition and E&P company based in Denver.
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