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Chesapeake reorganization plan wins bankruptcy judge’s approval
A bankruptcy judge in Texas has signed off on the Chapter 11 reorganization plan of Oklahoma City’s Chesapeake Energy.
The approval this month came after the company filed reorganization bankruptcy in September. On Nov. 4, the U.S. Bankruptcy Court for the Southern District of Texas signed off on the plan which became effective Nov. 19, according to a filing made by Chesapeake Energy with the Securities Exchange Commission.
As a result, all shares outstanding before the ruling were cancelled. The filing indicated that Chesapeake Holdings, a direct wholly-owned subsidiary of Chesapeake is a direct beneficial owner of 1,351,514 shares.
When Chesapeake Energy filed bankruptcy, it owed $8.9 billion to creditors.
The company’s plan included the sale of its Mid-Continent operations where daily production averaged 12,000 barrels of oil equivalent in the second quarter of 2020.
Chesapeake planned to continue operations in the Marcellus Shale field of the Appalachia Basin where its more than 110 workers oversee operations spanning 540,000 acres. At least four drilling rigs were in operation in the play.
The company also planned to continue operations in the Eagle Ford Shale of South Texas where it had a reported 279 employees located in field offices in Carrizo Springs, Cotulla and Caldwell. They covered 655,000 acres.
Chesapeake also said it would continue to operate in the Haynesville Shale in Louisiana where about 80 employees are located in the Bossier and DeSoto parishes of the state. At least two rigs were reported to be working in the play.
The firm also said it will continue to operate in the Powder River Basin in Wyoming where it has 75 employees located in field officers in Casper and Douglas. They oversee operations covering 248,000 acres.