NEW ORLEANS — Chaffe & Associates, a middle market investment bank, has announced the closing of Trimont Energy’s sale of its Garden Island Bay upstream oil and gas assets through a Chapter 11 bankruptcy process. The proceedings are pending in the Eastern District of Louisiana with the Hon. Meredith S. Grabill presiding, and future sales are still ongoing.
The sale, which closed on June 11, was between Trimont Energy and Spectrum AR, a newly formed energy company with operations based in Louisiana.
The assets included the oil and gas leases, producing and non-producing reserves, and shut-in or inactive wells located in Louisiana State Lease 214, known as Garden Island Bay. The transaction also included transportation and storage facilities and liabilities for plugging and abandonment of approximately $20 million. The final purchase price was $5.45 million, which was the highest and best bid after Chaffe conducted an auction.
“We are extremely pleased to have advised Trimont Energy on this significant transaction, and more importantly the outcome it produced,” said Michael H. Schmidt, managing director of Chaffe’s Corporate Finance Group. “The successful sale of the Garden Island Bay field is nothing short of fantastic for the creditors of Trimont and the State of Louisiana. This deal not only underscores the value of these assets but also highlights the potential of the Gulf Coast for future energy production. We believe that Spectrum Energy, with its commitment to enhancing proven and producing assets, is well-positioned to unlock further potential of these resources. We look forward to seeing the positive impact this will have on the energy landscape in the region.”
“This was a complex set of circumstances, and not uncommon in South Louisiana for legacy assets,” said Christopher Ryals, the debtor’s chief restructuring officer. “Throughout the process Spectrum Energy was professional and thorough, and we were pleased to build a rapport with their management team and ownership. I am extremely fortunate to have worked in this case alongside the dedicated and talented employees of Trimont, the skilled and experienced legal counsel of Heller, Draper, & Horn and constructive alignment with the estate and creditor professionals. Additionally, Michael Schmidt and his team at Chaffe were instrumental in creating the necessary competitive tension to create an outlier result.
Trimont was represented by Heller, Draper, & Horn as debtor’s counsel. Spectrum Energy was represented by Lugenbuhl, Wheaton, Peck, Rankin & Hubbard as counsel to the purchasers.
Headquartered in New Orleans Chaffe & Associates provides investment banking services to its clients, including a full suite of transactional advisory services along with valuations for a multitude of needs.
