Synergy Secures Financing from Munich Re for Los Cerritos Wetlands Restoration and Mitigation Bank Project
HOUSTON–(BUSINESS WIRE)–#banking–Synergy, a Long Beach-based private oil and gas company, is pleased to announce it will restore precious coastal wetlands on a 140-acre site in Long Beach, California, in collaboration with Munich Re, a global reinsurance company.
“Synergy is very pleased to begin this relationship with Munich RE. This new financing provides us the funds we need and enables us to immediately begin the abandonment of the Synergy Oil Field and the restoration of 156 acres of prime coastal wetlands. It is a huge win for everyone, especially the communities of Long Beach and Seal Beach,” said John McKeown, CEO and Principal of Synergy.
The allocated funds from Munich Re’s financing will play a pivotal role in Synergy’s efforts to plug and abandon (P&A) legacy wells while creating a permanent wetlands conservation site. This collaboration represents not only a significant milestone for Synergy, showcasing the dedication to fostering environmental stewardship and sustainable development, but also the first meaningful debt placement to enable the further development of a wetlands mitigation bank.
“We are glad to provide this financing solution to Synergy for a significant project that will benefit many stakeholders, including the City of Long Beach and communities that neighbor the Los Cerritos wetlands,” commented Vikram Nath, Managing Director of Energy Transition Finance at Munich Re.
As the transaction progresses, further details on the utilization of funds and the expected outcomes will be communicated. Synergy remains committed to transparency and sustainable practices.
Opportune Partners LLC acted as exclusive financial advisor and placement agent for Synergy.
Synergy is a Long Beach, California based energy company, committed to advancing sustainable practices and environmental stewardship. With a focus on innovation and responsible energy development, Synergy strives to make a positive impact on the industry and the communities it serves.
Munich RE is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The Group consists of the reinsurance and ERGO business segments, as well as the asset manager MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake to Hurricane Ian in 2022. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies or cyber risks. The Group is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individuals.
Opportune is a leading global business advisory firm focused on adding value to clients across multiple industries with preeminence in energy. Opportune’s practice areas include business transformation, complex financial reporting, disputes and litigations, investment banking, outsourcing, process and technology, reserve engineering and geosciences, restructuring, tax, transactional advisory services, and valuation. Opportune Partners LLC is an independent investment banking and financial advisory affiliate of Opportune LLP. For more information on Opportune and Opportune Partners, please visit our website at www.opportune.com.
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