Oil Patch Monitor Expects Many More Energy Bankruptcies

At least three more Texas oil and gas companies joined the list of those filing for bankruptcy in the past week.

They joined Energy XXI which OK Energy Today reported on last week, bringing the nationwide total of energy bankruptcies to 21 since the start of the year.

Goodrich Petroleum Corp. filed Chapter 11 bankruptcy in the U.S. Bankruptcy court of the Southern District of Houston. It listed nearly $500 million in debt and hopes to eliminate $400 million through the restructuring.

Hydrocarb Energy Corp. of Houston filed for bankruptcy last week as well, listing $14.3 million in debt. The company executives knew they were in trouble in January when they hired a New York-based investment bank to help refinance debt and leverage its infrastructure.

The third firm was Aztec Oil and Gas which listed $500,000 in debt. The Houston-based company filed for bankruptcy on April 13.

At least 63 energy firms filed for bankruptcy in 2015 and so far this year with at least $22.5 billion in secured and unsecured debt. Two of those firms are from Oklahoma. They include PostRock Energy and Osage Exploration and Development. Officials with Haynes and Boone law firm’s Oil Patch Monitor indicate they don’t believe they will be the last to head to bankruptcy court this year.

“All indications suggest many more producer bankruptcy filings will occur during 2016,” said the Monitor.


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