Oil and gas producer GMX Resources Inc. filed for chapter 11 protection yesterday, hit by weak natural gas prices, Reuters reported yesterday. The company, with assets in the Williston Basin in North Dakota and Montana, the Denver Julesburg Basin in Wyoming and the East Texas Basin, said that it could not raise funds for long-term liquidity needs. Two GMX units—Diamond Blue Drilling Co. and Endeavor Pipeline Inc.—also filed for bankruptcy protection. GMX also has a 60 percent stake in Endeavor Gathering, which owns the natural gas gathering system and related equipment operated by Endeavor Pipeline. GMX did not include Endeavor Gathering in the filing. GMX said that it has obtained debtor-in-possession financing of up to $50 million from the bondholders. The case is In re: GMX Resources Inc., U.S. Bankruptcy Court, Western District of Oklahoma, No:13-11456.
For more information and insight on oil and gas bankruptcies, make sure to pick up a copy of When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy available in the ABI Bookstore.