Sabine and Samson File Chapter 11 Bankruptcy; Who is Next? Exco? Halcon? Goodrich? Comstock?

Sabine Oil & Gas files for bankruptcy

July 15 reuters.com

Oil and gas company Sabine Oil & Gas Corp filed for Chapter 11 bankruptcy on Wednesday, becoming the latest victim to the decline in global oil prices. The company said it was in discussions with its lenders and debt holders on a financial restructuring plan. Sabine Oil expects to support itself with its cash on hand and funds generated from ongoing operations. The company listed assets and liabilities of more than $1 billion. The case is in U.S. Bankruptcy Court, Southern District of New York, Case No: 15-11835.

(Reporting by Ankush Sharma in Bengaluru; Editing by Anand Basu)______

Before lunch I got an Internet alert that EXCO shares were down to $0.87.  After lunch they were $0.86.  At the end of trading they were $0.83.  They have probably already received their notice letter from the NYSE giving them 90 days to get the share price back above $1 or they will be de-listed and then become a Pink Sheet, penny stock.  I hope they can recover but now is the time for all lessors faced with the possibility of their operator taking bankruptcy to begin discussions with their neighbors about taking legal action to protect their royalty income or have their leases terminated. Skip

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Permalink Reply by JHH on July 15, 2015 at 12:10

Damn!   Thanks for the update.

Permalink Reply by Frank on July 15, 2015 at 14:17

A few thousand invested and a few hundred available now.  I'll keep my Exco pennies.  It might be the next Enron.

Permalink Reply by JHH on July 15, 2015 at 14:42

Investment banker "The Fixer" Wilbur Ross is the money behind EXCO.  Amazing he has't been able to "fix" EXCO.  I still have my hopes. 

Permalink Reply by Skip Peel - Mineral Consultant on July 17, 2015 at 11:22

Seven oil & gas producers file for bankruptcy in 2015, two this week

July 17, 2015  By Joey Mechelle Stenner Editor  pennenergy.com

Milagro Oil & Gas filed for Chapter 11 bankruptcy this week, a day after Sabine Oil & Gas Corp. filed for the same protection. Milagro is one of seven oil & gas producers to restructure in the wake of low oil and natural gas prices. Credit rating agencies expect more to follow.

Court records show that Milagro reports that it has $1 million to $10 million in assets, and up to $1 billion in liabilities.

The company has 1,200 wells in South Texas, Louisiana and the Gulf Coast. It plans to sell its oil and gas properties and related liabilities to another Houston-based company, White Oak Resources VI for $217 million in cash and equity. White Oak drills for oil and gas in Southern Louisiana and South and East Texas.

Sabine Oil & Gas Corp. also sought Chapter 11 bankruptcy this week, making it the largest U.S. oil producer to file for bankruptcy protection.

Court records show Sabine has $2.48 billion in assets and $2.91 billion at the end of May, making this the second largest U.S. bankruptcy this year, according to data compiled by Bloomberg.

Sabine drills for oil and gas in the Haynesville shale in East Texas and Louisiana, the Eagle Ford Shale and the Granite Wash in Texas.

Companies blame plummeting oil & gas prices and high debt for the collapse, ultimately forcing financial capitulation.

Milagro, Sabine, Quicksilver, Saratoga Resources, BPZ Resources, Dune Energy and American Eagle Energy Corp. have all filed for bankruptcy protection this year. The companies employed a combined 745 workers at the end of last year according to the latest company data.

Permalink Reply by Skip Peel - Mineral Consultant on July 17, 2015 at 11:30

Stock price: XCO (NYSE)

$0.76 -0.04 (-5.11%)

July 17, 2015 at 4:11:07 PM EDT

Stock price: HK (NYSE)

$1.04 +0.02 (+1.96%)

July 17, 2015 at 4:02:25 PM EDT

 

Permalink Reply by Krkyoldhag on July 18, 2015 at 7:48

No royalty has been paid on three wells on 31 in  Marshall.  Does the lease make a mineral owner a secured creditor?

Because my understanding on creditors only the ones secured will get even ten cents on dollar.  If that much.

Could royalty owners group together and file motions to stop removal of their minerals from the ground?

Do they have any rights at all?

Permalink Reply by Skip Peel - Mineral Consultant on July 18, 2015 at 7:59

It is my understanding that mineral lessors must make formal demand to terminate their lease when the lessee seeks protection under federal bankruptcy law.  By doing so they force the lessee/operator to make a decision to either resume payment of royalty within a set period (I believe it is 120 days) or release the lessor from the lease.  If the company values the lease, they will resume payment if possible.  If not, they will release it.  If a lessor does nothing they are at the mercy of whatever the judge may decide which could result in being classified as an "un-secured" creditor.  You need an attorney that has O&G and bankruptcy experience if you can find one.  And mineral lessors within the same drilling unit should band together to share the legal costs.

Permalink Reply by Skip Peel - Mineral Consultant on July 19, 2015 at 8:30

Thanks, Mike R.  That squares well with what I have been told.

Permalink Reply by Skip Peel - Mineral Consultant on July 20, 2015 at 8:39

Stock price: XCO (NYSE)

$0.71 -0.06 (-7.55%)

July 20, 2015 at 3:13:10 PM EDT

 

Stock price: HK (NYSE)

$0.97 -0.07 (-6.70%)


Jul 20, 3:37 PM EDT

Stock price:  GDP (NYSE)

$0.99  -0.21

July 20, 2015, 3:44 PM EDT

 

Permalink Reply by Skip Peel - Mineral Consultant on July 20, 2015 at 11:28
Stock price: XCO (NYSE)
$0.68 -0.09 (-12.15%)
July 20, 2015 at 4:02:09 PM EDT 
Permalink Reply by Skip Peel - Mineral Consultant on July 20, 2015 at 11:47
Stock price: GDP (NYSE)
$0.97 -0.23 (-19.17%)

July 20, 2015 at 4:07:30 PM EDT

Permalink Reply by Skip Peel - Mineral Consultant on July 23, 2015 at 11:49

Stock price: HK (NYSE)

$0.90 -0.06 (-6.14%)

July 23, 2015 at 4:02:48 PM EDT

Stock price: XCO (NYSE)

$0.69 +0.02 (+2.87%)

July 23, 2015 at 4:02:15 PM EDT

Stock price: GDP (NYSE)

$0.97 +0.02 (+2.38%)

July 23, 2015 at 4:07:51 PM EDT

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