Let’s hope the Chesapeake royalty owners decision remains that way!
Thank you Wade for keeping us informed.
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Update: I heard back from Axis (one of the group under the heading Extraction Oil & Gas); they will continue to pay royalties during the restructuring process, in case this answer helps anyone else.
Thank you for this great forum!
I deal with Chaparral and I thought I received notice that someone had bought them out but have to go to my files. Anybody else get that memo and does that mean what they didn’t get rid of they are filing bankruptcy on? what about working interest? I have a working interest and overriding interests but have not received the bankruptcy notice. Was this recent? I’m thinking this might not be an asset anymore but a liability?
Oilwell- If you have a working interest with them you should receive a notice. A fairly recent bankruptcy.
Multiple updates-
Chaparral - Disclosure statement set for approval on October 1 and the court approved an order they may continue to pay royalty owners.
Sable’s auction of its assets is Oct. 10.
Ultra’s plan of reorganization was approved over objections.
Thanks…I did receive the bankruptcy notice but still know how it affects me as a WI and royalty owner. Thinking some of it may be ORI whether that’s a working interest I do not know. I inherited quite a bit from my grandfather who lived in Ardmore Ok and most was done by him and as far as I know. I haven’t filed anything to be a interest owner, just leasing. But I do have a lot of paperwork, original, that I can go thru that was there when I took over 20 years ago that I can look thru. I pay JOI to Chaparral currently on Baker 1-27 which is minimal, $1-2 a month. So is this going to be a liability for me to be a WI during a bankruptcy?
Chesapeake - A hearing on the Disclosure Statement is October 22. See below.
2020-09-11 Disclosure Statement.pdf (1.2 MB)
Denbury- The Disclosure Statement and proposed plan were approved September 2.
MTE Holdings (MDC) - Filed a 4th motion for extension of time to file their proposed plan. Not a good sign.
Sable- The auction to sell the assets is October 10. Several objections have been filed to the sale.
Ultra and Unit- Both have had plans approved, so I will not provide further updates on them.
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Chaparral Energy - The proposed plan has drawn several objections and been supplemented several times to try to meet some of the objections.
Lonestar Resources, primarily an Eagle Ford operator, filed a pre-packaged Chapter 11 in Houston. Below is a Press Release, and Order Authorizing Payment of Royalties (note these orders only allow the debtor to pay, they do not order the debtor to pay - you need to continue to monitor payments with any bankrupt company).
Lonestar Press Release.pdf (33.7 KB)
Order Authorizing Payment of Royalties.pdf (631.2 KB)
Oasis Petroleum filed a pre-packaged Chapter 11 in Houston. Press release is below. The deadlines are:
Voting Deadline: November 2, 2020 at 4:00 p.m. (CT) Objection Deadline: November 2, 2020 at 4:00 p.m. (CT)
Confirmation Hearing: November 10, 2020 at 3:30 p.m. (CT)
They also have gotten an order entered authorizing paying royalty owners. However, you need to review Disclosure Statements carefully and the Plan to see what kinds of lease claims have to be presented in the bankruptcy versus ones that you can continue to present afterword.
Oasis Press Release.pdf (1.0 MB)
Joint Disclosure Statement.pdf (6.6 MB)
We receive royalties from Oasis and received the bankruptcy packet. Tried to wade through the “Opt-Out” form, but uncertain whether it applies to mineral leases? Any information would be appreciated.
JP1 - Cannot comment without seeing packet and knowing your situation. There is no one size fits all in bankruptcy cases.
As predicted here since shortly after the filing, MTE Holdings (MDC) looks like it is headed to a liquidating Chapter 11. Bids are due by November 6 and the auction is November 13. Order was signed yesterday. It is subject to objections, but these are usually overruled.
public_X041_10060_PLEADINGS_1006010152080000000183.pdf (65.8 KB)
Wade, am I reading it right that the MDC debtors just withdrew their petition to force liquidation that they had issued five days earlier? Does this mean negotiations are on again? I thought the bankruptcy court was who decides when it’s time to stop talking and put everything up for sale?
https://cases.stretto.com/public/X041/10060/PLEADINGS/1006010202080000000225.pdf
Ameredev was the winning bidder for Lillis’ assets at $42.6 million.