Black Elk Energy Offshore Operations, LLC, an independent oil and gas company, announced the completion of a significant financial agreement with a New York-based hedge fund Platinum Partners Value Arbitrage Fund L.P. (“Platinum”). The new fund is a $50 Million preferred equity commitment to Black Elk’s 2013 drilling program in the Gulf of Mexico.
The 2013 drilling program includes a 23 well capital campaign that will begin monetizing the companies “proved undeveloped reserve” inventory. The launch of this development program will mark the beginning of a multiple year project.
“We are extremely excited to begin our drilling program”, says John Hoffman, President and Chief Executive Officer of Black Elk Energy. “We look forward to expanding our business and bringing added success to Platinum and our stockholders. With our team of experienced professionals, I am confident 2013 will be successful.”
“We are excited to continue our partnership with Black Elk Energy and look forward to future prospects”, says Mark Nordlicht, Chairman of Platinum. “Black Elk Energy continues to demonstrate their track record of success and we are excited to begin the drilling program.”