Freepoint Commodities Closes VPP Transaction

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Jul 23, 2013, 08:30 ET

STAMFORD, Conn., July 23, 2013 /PRNewswire/ -- Freepoint Commodities LLC today announced that it has closed a volumetric production payment (VPP) transaction with Elm Ridge Exploration Company, LLC, a private oil and gas company located in Dallas, Texas. The VPP transaction, which closed on July 17, involves the purchase of a term overriding royalty interest in Elm Ridge's proved developed producing and proved undeveloped oil and gas reserves. With specified volumes of oil and gas to be delivered over an 11-year term, the transaction involves production from almost a thousand wells located in the San Juan Basin in New Mexico and Colorado.

"The size and complexity of this transaction demonstrate the ability of Freepoint's platform to deliver customized financing solutions to the upstream oil and gas sector," said Brian Cumming, Managing Director and Head of Structured Finance for Freepoint.

"We are extremely pleased to have entered into this transaction with Freepoint, which enables us to replace our existing debt facilities with more attractively priced capital," said Jamie Clark, Chief Executive Officer of Elm Ridge.

About Freepoint Commodities LLC

Freepoint Commodities LLC 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.

Media Contact:

Michael Boonshoft
RF|Binder
(212)-994-7538
[email protected]

SOURCE Freepoint Commodities LLC