U.S.-based Fieldwood Energy has closed its acquisition of all of Noble Energy’s deepwater oil and gas assets located in the Gulf of Mexico.
The effective date of the transaction is January 1, 2018. The $710 million worth acquisition of Noble Energy’s assets was a key component of Fieldwood’s restructuring and recapitalization plan filed in mid-February.
The plan was confirmed last week by the Bankruptcy Court for the Southern District of Texas.
Fieldwood said on Thursday that, through the prepackaged plan, the company raised $525 million of capital which was used to fund the acquisition and provide general working capital, while reducing its debt levels by $1.6 billion and eliminating $134 million in annual cash interest.
Fieldwood’s Chief Executive Officer, Matt McCarroll, commented, “This acquisition adds quality producing assets to our existing portfolio, provides us with numerous deepwater drilling opportunities and enhances our position as one of the largest operators in the Gulf of Mexico.
“With a strengthened balance sheet, substantially more cash flow and the new, talented deepwater operating team, we are well positioned to capitalize on future opportunities while executing our safe and efficient operations strategy to create long-term value.”
The entire restructuring and recapitalization process included a major acquisition, received a 100% vote of approval from lenders and attracted 100% participation in the equity rights offering.