Texas and Louisiana independent operator Cubic Energy Inc. has filed for bankruptcy protection in a prepackaged plan that gives control of the company to its lenders.
Dallas-based Cubic is handing over control of the company to creditor Wells Fargo Energy Capital Inc. and secured bondholders, according to the filing in U.S. Bankruptcy Court in Delaware.
The filing said the company has between 50 and 99 creditors, assets of $50 million to $100 million, and debts of $100 million to $500 million.
According to Cubic's website, in Texas the company owns 28 natural gas wells and 19 oil wells, located in Leon County. The gas wells are producing from the Lower Bossier, Middle Bossier, Cotton Valley Knowles Limestone and Pettet formations. The oil wells are producing from the Austin Chalk, Woodbine and Glen Rose formations. The operator of the wells is Fossil Operating Inc.
In Louisiana the company has 55 natural gas wells in Caddo and DeSoto parishes. Four new horizontal Haynesville Shale wells were drilled in December by EXCO. The Louisiana assets are held by production and wells are producing from the Cotton Valley, Hosston and Haynesville Shale formations. The acreage position in the Cotton Valley/Hosston is 23,000 gross/9,500 net acres. Cubic is a partner in the Cotton Valley/Hosston acreage with Indigo Minerals. In the Haynesville Cubic has 21,000 gross/3,800 net acres. The Haynesville acreage is operated by EXCO Operating Co. LP, BHP Billiton, Chesapeake Energy Corp., Goodrich Petroleum Co. and EP Energy.
In October 2013 Cubic acquired East Texas assets from Gastar Exploration Ltd. The transaction was delayed multiple times as Cubic worked to line up financing (see Shale Daily, Oct. 2, 2013; April 23, 2013).