After regaining compliance in January, Chaparral Energy Inc. said Thursday it is under the gun once again, with about six months to shore up its stock price to remain on the New York Stock Exchange.
The notification was issued Feb. 28 by the New York Stock Exchange indicating the average closing price for the common stock had fallen below $1.00/share for 30 consecutive trading days. Under the stock exchange rules, a company has six months once it is notified to return to compliance.
In January, the independent was notified that it had regained full compliance with the continued listing standards. Chaparral also was restructured in 2017 after emerging from bankruptcy.
The latest notification does not affect business operations nor its Securities and Exchange Commission reporting requirements, and it would not conflict with or cause a default under any of the material debt or other agreements, management said.
The Oklahoma City-based independent has more than 210,000 net surface acres in the Midcontinent, where it develops Oklahoma’s Merge formation and the STACK, aka Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties. Chaparral has 120,000-plus net acres primarily in Kingfisher, Canadian and Garfield counties.
Last year the producer was preparing the Greenback development project in Canadian County, which is to include two landing targets with three to four wells per landing zone. The results of the initial spacing and production tests were expected to influence the 2020 production outlook.
Fourth quarter and full-year results for 2019 are scheduled to be issued on Thursday (March 12).