Osage Exploration and Development Inc. filed for chapter 11 protection on Thursday in the U.S. Bankruptcy Court in Oklahoma City with plans to sell its assets through a court-overseen auction process, Dow Jones Daily Bankruptcy Review reported today. The company blamed its woes on the "substantial drop" in oil and natural gas prices in recent months, according to court papers. "Based on the debtor's current capital structure, liquidity constraints, and inability to raise new capital, it has become necessary for the debtor to seek chapter 11," Kim Bradford, president of Osage, said in court papers. The cash-strapped company said that it was unable to afford to continue developing its oil and gas reserves or to pay its operational expenses and debt obligations. It suspended its operations in the field, and the last well that it drilled, completed and brought online was in January. Osage owes about $26 million to Apollo Global Management LLC, which in 2012 issued bonds to the company. Read more. (Subscription required.)
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