Bankruptcy Liquidation for Oklahoma City’s New Source Energy

An Oklahoma City independent oil company that focused on drilling activity in eastern Oklahoma has become a victim of the energy downturn.

New Source Energy Partners as well as its general partner New Source Energy GP LLC filed for bankruptcy liquidation this week in Delaware.

The firm said it owes $51.2 million to more than 50 creditors but only had $5.1 million in cash and property. The move to bankruptcy came after New Source reported $61.5 million in gross revenues in 2014 and $19.3 million in 2015. It only made $2.1 million so far this year.

The company website listed Kristian B. Kos as Chairman and CEO; Carol T. Bryant as Vice President of Engineering; Dikran Tourian as President and Chief Operating Officer; and Tom R. Russell as Vice President and Senior Counsel.

Kos was named CEO in August 2012 and Chairman in October 2014. He was also President of the general partner and had been involved in the energy industry since 2005 where he provided consulting and managed his private investments, including MidCentral Energy Services, a firm the company acquired in 2013.

New Source Energy focused on what its website said were “conventional resource reservoirs in east-central Oklahoma” including the Hunton Reservoir. It described its exploration as targeting known continuous hydrocarbon systems and created efficiencies “through our access to ready, low-cost infrastructure with a model that is both low risk and repeatable.”

The handwriting was on the wall in December, 2015 when, according to the Securities and Exchange Commission, trading of New Source Energy shares was removed from the New York Stock Exchange. The last SEC filing made by New Source was Feb. 5, 2016 which was a termination of the registration of a Class Security under the SEC.