Private held, Houston-based Black Elk Energy LLC has closed a financial agreement with New York-based hedge fund Platinum Partners Value Arbitrage Fund LP.

The financial backing is hoped to create greater investment flexibility for Black Elk Energy that 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 credit and cash constraints are also creating a turnover of assets and businesses at very compelling valuations.

Black Energy chief executive John Hoffman says, “We have been fortunate in this economic downturn. 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.”

Platinum chairman Mark Nordlicht says, “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.”

Black Elk Energy has oil and gas assets in the Midcontinent and southern Gulf Coast states.