Welcome to Oil and Fuel Industry, Today I will share info about the Oil and Gas bankruptcy. Bankruptcies are usually written off by the original shareholor.
Oil Companies From Boom to Bankruptcy:
The US rocky oil industry is experiencing a real test of its endurance.
“As pressure mounts on oil producers, vulnerable companies face a threat of dwindling investment.
Stumbling production, the need to sell assets and the possibility of bankruptcy,” the report said.
ConocoPhillips, the largest oil exploration and production company in the United States.
On Monday unveiled plans to cut capital spending by about 20 percent in 2015 to $ 13.5 billion, sharply lower than analysts’ expectations.
The company said it would delay drilling programs in several Areas of rock oil in North America. ”
Baker Hughes, the energy services group expected to be bought by rival Halliburton.
On Friday published data showing that the number of oil drilling platforms in the rocky Eagle Rock region, south of Texas, has fallen by 16 since October to 190.
Bankruptcy threatens the University of Oil and Gas:
Basra Governorate Council decided to provide support to the University of Oil and Gas.
And to provide all its requirements for the development of two other colleges to develop its work.
The Chairman of the Committee on Oil and Gas in the Council Ali Shaddad said that the university has been working for three years in one college.
Pointing out that the Council voted unanimously to pay the debts caused by the University.
In view of the provision of service to a large segment of the people of the province.
The President of the University of Oil and Gas Ali Mashat, for his part, the importance of support provided by the provincial council.
So that the university can meet the conditions of the Ministry of Higher Education and Scientific Research on the establishment of universities.
Which requires the existence of three colleges at least, and expressed the hope that the Ministry Oil in support of this young university.
Oil and Gas Bankruptcy judge:
A bankruptcy judge has signed off on the sale of most of San Antonio-based All American Oil & Gas Inc.’s assets to its largest creditor.
Santa Monica, Calif.-based Kern Cal Oil 7, which has held some $145 million in secured claims, will acquire the assets.
As part of the deal, KCO bid the amount it’s owed by AAOG in what is referred to in bankruptcy court as a “credit bid.”
Chief U.S. Bankruptcy Judge Ronald King in San Antonio approved the deal Thursday.
The bankruptcy had been shaping up to be a contentious affair until AAOG and KCO agreed to mediate their claims.
“We very quickly were able to arrive at a resolution,” Richard Wynne, a lawyer for AAOG, told King at a Thursday hearing.
“While not ideal, and certainly not what the company sought or what shareholders liked.
Is what the reality is in terms of value in the oil and gas business and the very extreme price volatility that we saw.”
“AAOG shareholders stand to receive up to $5.5 million in royalty payments if certain pricing conditions are met,”.
Said bankruptcy lawyer Deborah Williamson, who also represents the company.
If the few remaining unsecured claims are resolved, then AAOG believes most, if not all, of the proceeds of the overriding royalty interest will be distributed to shareholders, she added.
Oil & Gas Industry Watches for Bankruptcy:
“Optimists can point to many positive data points to argue that the bulk of E&P bankruptcies are behind us.
Many companies have restructured their debt, reduced leverage, enforced greater capital discipline to live within cash flow.
And from a timing standpoint, have been able to revise 2019 drilling budgets to factor in a lower price expectation.
Thereby reducing total number of expected wells to be drilled to conserve cash,” said Haynes and Boone Energy Practice Co-Chair Buddy Clark.
Still, “pessimists have their own set of alternate facts that would augur an opposite trend for the industry,”.
Said Haynes and Boone Partner Charles A. Beckham Jr. “Wellhead prices for natural gas.
Remain anemic with little expectation for near term increases on a seasonally adjusted basis.”
Oil and Gas Bankruptcy of the central bank in Aden:
The Central Bank of Aden announced its bankruptcy and the lack of any cash liquidity.
Three months after the decision of the resignation of President Abderbo Mansour Hadi to move his headquarters from Sanaa.
“There is no liquidity available at the Central Bank of Yemen and revenues will be received only,” the bank’s official Web site,
Although the Hadi government since the bank’s administration in Aden has not paid any salaries owed to state employees due from previous months.
The bank’s bankruptcy announcement raised questions about the fate of oil and gas revenues produced.
By the provinces of Marib and Shabwa, Most of them are dominated by leaders of the Islah Party and others loyal to Hadi.
Bankruptcy of Oil Companies:
For drilling companies trying to break the brink of financial collapse, this is a familiar dilemma.
Even as global crude prices soared, companies that went bankrupt such as Sand Ridge and Altra Petroleum Corp found that resuming work was not easy.
Companies have been cut off from executive services and shareholder revolutions as investors know that the recovery of US rock oil can not save all players.
“The foundation is that many of these companies do not have very good assets,” said Leo Mariani, an analyst at Nat Alliance Security in Austin, Texas.
Its shares also fell. Ikhan dropped the deal on the grounds of overvaluation and the plan was canceled in late December.
Even strong exploration firms have seen their shares weaken recently amid concerns about global oil prices.
It was the worst for many companies, which went bankrupt because many of them worked outside the Permian oil tank in Texas and New Mexico.
Sand Ridge and Medstate, for example, have land in Oklahoma that has proved undesirable.
According to Tim Rezvan, an analyst at Mizuyo Securities in the United States.
The tendency of many companies towards the production of natural gas does not provide assistance in this regard,
Because it did not get the momentum achieved by oil.
Bankruptcies are usually written off by the original shareholders and companies are left.
With a different shareholder base of creditors who see their debts as new shares.