Black Elk Energy Secures Financial Backing with Platinum Partners
Black Elk Energy has completed a significant financial agreement with Platinum Partners Value Arbitrage Fund L.P., marking another major milestone for the Company. The financial backing creates greater investment flexibility for Black Elk Energy, a rapidly growing oil and gas company. This agreement, combined with the company's core operational & exploitation skills, broadens the opportunity for future acquisitions and investments in oil and gas properties.
Despite current economic conditions, Platinum agreed the partnership would prove effective as the long term factors affecting energy demand remain largely unchanged. The unprecedented credit and cash constraints are also creating a turnover of assets and businesses at very compelling valuations. Black Elk Energy is now poised to create significant values in this down market.
"We have been fortunate in this economic downturn," said John Hoffman, CEO of Black Elk Energy. "Having a financial partner that is completely aligned with our bullish energy views in a weak energy segment provides a platform for wealth creation for all our stakeholders. Sellers' need for liquidity and buyers' lack of credit to transact meaningful deals has created a unique situation for companies with good financials and access to capital. Black Elk Energy is now in a strong position to move on opportunities. While considering several oil and gas development options, we lean towards natural gas exploration and production. The next decade will see the demand for natural gas increase in North America due to its smaller carbon footprint compared to coal and other hydrocarbons. We look forward to expanding our business and bringing added success to Platinum and our stockholders."
Mark Nordlicht, Chairman of Platinum added, "We are excited to partner with the highly experienced management team assembled at Black Elk Energy, who have a demonstrated track record of success in the oil and gas industry and a deep commitment to enhancing stakeholder value."