Flame Acquisition in a regulatory filing said it had additional funding to its PIPE supporting a business combination with Sable Offshore. The PIPE now stands at about $520 million — one of the largest private investment packages put together by a SPAC in years. Total PIPE commitments had reached $74.5 million as of last August.
Sable Offshore is a Nova Scotia-based natural gas exploration consortium.
The merger was announced in November 2022 at an $883 million enterprise value. At that time, the SPAC said it intended to pursue PIPE subscriptions totalling up to $400 million. Flame has also secured a $623 million five-year term loan at 10% annual interest. The loan requires a $19 million deposit up front.
Sable has an agreement to acquire the Santa Ynez oil field in Federal waters off the California coast and associated onshore processing and pipeline assets from Exxon Mobil and Mobil Pacific Pipeline Company for $625 million. Read more.