Another Denver oil company files for bankruptcy
Citing the "dramatic decline in oil prices, the continued low prices of oil and natural gas, and the general uncertainty in the energy markets," another Denver energy company has filed for bankruptcy protection. Emerald Oil Inc said it's filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware. Its oil and gas operations are located in the Williston Basin of North Dakota and Montana.
Citing the "dramatic decline in oil prices, the continued low prices of oil and natural gas, and the general uncertainty in the energy markets," another Denver energy company has filed for bankruptcy protection.
Prior to the bankruptcy filing, Emerald said it reached a deal with Latium Enterprises Inc. of England to sell "substantially all of Emerald's assets" and to serve as a "stalking horse" in the bankruptcy process.
"The plan we are announcing today will provide for continuity in Emerald's current and future business operations. This process is the only path going forward and should enable the business to execute a turnaround in the current low oil price environment. Importantly, Emerald's plan and the Latium transaction would allow the business to continue to operate and would provide a sound path for potential recovery for company stakeholders," said McAndrew Rudisill, president and CEO of Emerald, in a statement.
Emerald headquarters are at 200 Columbine St. in Denver and the company has 42 employees, according to YahooFinance. It's the second Denver energy company bankruptcy filing this month: On March 18, Venoco Inc., an oil and gas company focused on pumping oil in southern California, filed a voluntary petition for Chapter 11 bankruptcy protection.