OKLAHOMA CITY, July 1, 2016 /PRNewswire/ -- White Star
Petroleum, LLC ("White Star") today announced that it has completed
the previously announced acquisition of Mississippi Lime and
Woodford Shale assets (the
"Acquisition") from Devon Energy Corporation (NYSE: DVN) for
$200 million net of customary closing
adjustments. The acquired assets include approximately 210,000 net
acres in Central Northern
Oklahoma, primarily located in Payne, Lincoln, Logan and Garfield Counties in Oklahoma, with most of the position held by
production.
In conjunction with the Acquisition, White Star entered into a
senior secured, reserves-based revolving credit facility (the
"Amended and Restated Syndicated Facility") to amend and restate
its existing credit facility. The Amended and Restated
Syndicated Facility has a term of four years with initial
commitments of $210 million. MUFG
Union Bank N.A. and Capital One Securities, Inc. served as joint
lead arrangers for the Amended and Restated Syndicated Facility and
MUFG Union Bank, N.A. is acting as Administrative Agent.
Concurrently with the Acquisition, White Star also extinguished
substantially all of its 12.00% Second Lien Notes due 2020 (the
"Second Lien Notes") through privately negotiated repurchases or
exchanges for equity in White Star Petroleum Holdings, LLC
("Holdings"), White Star's parent company. Borrowings under
the Amended and Restated Syndicated Facility together with proceeds
from new equity financing led by The Energy & Minerals Group
("EMG") were used to fund the Acquisition and the repurchases of
Second Lien Notes.
"The closing of today's transactions represents a significant
milestone for White Star and has transformed the company,
positioning it for growth and continued value creation,"
Elliot J. Chambers, White Star's
Chief Executive Officer commented. "The acquisition of Mississippi
Lime and Woodford Shale assets from
Devon more than doubles White Star's production, cash flow and
acreage footprint. Our recapitalization initiatives reflect EMG's
ongoing support for White Star and have significantly improved our
leverage and liquidity profile."
As part of its ongoing strategy to broaden and deepen its
management team, White Star also announced the hiring of
Caleb G. Morgret as Chief Financial
Officer, Jeffrey J. Zanotti as
Senior Vice President, General Counsel and Secretary and Richard
"Ricky" D. Pollot as Chief Accounting Officer.
Morgret, 38, joined White Star on June 6,
2016. Morgret previously worked for Chesapeake Energy
Corporation for four years, most recently as Vice President and
Treasurer. Prior to Chesapeake, Morgret worked in investment
banking, having served in various roles with J.P. Morgan, Mizuho
Corporate Bank and UniCredit Group in London, UK, Frankfurt, Germany and Vienna, Austria. He earned an MBA from
Southern Methodist University in 2016
and a BBA from the University of South
Carolina in 2000. Morgret is a CFA charterholder.
Zanotti, 38, joined White Star on May 9,
2016. Zanotti previously worked for Seventy Seven Energy
Inc. as Assistant General Counsel and Assistant Secretary. Prior to
joining Seventy Seven Energy, Zanotti worked for Chesapeake for
four years as Assistant General Counsel – Corporate &
Securities and other roles of increasing responsibility.
Zanotti began his legal career in the Dallas office of Jones
Day. Zanotti earned a JD from Arizona State University in 2006 and a BA from
Southern Methodist University in
2000.
Pollot, 47, joined White Star on June 6,
2016. Pollot previously worked for Mustang Fuel Corporation
for 12 years, most recently as Director of Exploration and
Production Accounting. Prior to joining Mustang Fuel, Pollot worked
for Ernst & Young, LLP for 13 years. Pollot earned a BBA from
the University of Oklahoma in 1991 and
is a certified public accountant.
Advisors
White Star's legal advisor for the Acquisition was Porter Hedges
LLP and for the recapitalization transactions was Sullivan &
Cromwell LLP.
About White Star Petroleum, LLC
White Star Petroleum,
LLC is an independent oil and natural gas company focused on the
acquisition, development, operation and production of
unconventional oil and natural gas properties located in the
Mississippi Lime and Woodford Shale
plays in Central Northern
Oklahoma.
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SOURCE White Star Petroleum, LLC