Bankruptcy

SandRidge Energy Inc.said in an update it expects to drill a total of 37 wells this year, 26 horizontal laterals in the Midcontinent and 11 in Colorado’s Niobrara formation. Annual production is forecast to total about 18.9-19.3 million boe, versus nearly 30 million boe in 2015. Capital spending for 2016 is expected to be around $225-255 million. Two rigs are running in the onshore, one in the Mississippian Lime and one in the Niobrara’s North Park Basin, which SandRidge entered in 2015 (see Shale Daily,Nov. 5, 2015). The company is scheduled to emerge from Chapter 11 bankruptcy protection in early October (see Shale Daily,Sept. 12).

Midcontinent producer SandRidge Energy Inc. said Monday its reorganization plan has received “overwhelming support” from stakeholders and been confirmed by a Texas bankruptcy court, enabling it to emerge from Chapter 11 in October.

Sabine Oil & Gas Corp. officially emerged from bankruptcy protection as a private company last week, bringing its contentious journey through Chapter 11 to a close.

Ultra Petroleum Corp. is trying to make the most of its assets and the unsecured status of its lenders to push its way through bankruptcy and make it to $3 natural gas. If it does, there will be thousands of economic wells to drill, CEO Mike Watford told analysts Thursday.

Atlas Resource Partners LP (ARP) said Monday that it has reached a restructuring deal with nearly all of its lenders and bondholders that agreed to reduce its debt by $900 million in exchange for all the common equity in the new company when it emerges from Chapter 11 bankruptcy proceedings.

A U.S. bankruptcy court has approved Penn Virginia Corp.’s restructuring plan a month after the 134 year-old company filed for Chapter 11 protection, giving it what could be a swift exit from the proceedings.

A bankruptcy court judge in Manhattan rejected motions by two midstream companies to stay an order allowing Sabine Oil & Gas Corp. to terminate certain natural gas and condensate gathering agreements, and for summary judgment in the case.

With recent strengthening of oil prices, the outlook for the next wave of exploration and production company restructurings has improved somewhat, an attorney in the Baker Botts LLP financial restructuring practice told NGI’s Shale Daily. If the improvement sticks, it will be none too soon for many. For now, though, a painful reckoning continues.

After months of trying to reach an out-of-court agreement with its creditors and bondholders, Warren Resources Inc. became one of the latest oil and natural gas producers to succumb to the commodities downturn, filing voluntary petitions for Chapter 11 bankruptcy protection on Thursday.