Privately held oil and gas exploration and production company Chaparral Energy Inc. will not make an interest payment due April 1 tied to a $300 million bond, Reuters reported yesterday. The company, which acquires and develops oil and natural gas properties in Oklahoma, Texas and Kansas, said in its annual report filed on Wednesday that it may seek chapter 11 bankruptcy. It had missed a separate $16.5 million interest payment due March 1, kicking off a 30-day grace period. Chaparral lost $1.3 billion in the year ended Dec. 31, and has about $1.6 billion in debt, according to its annual report. The company drew down the balance on its $548 million revolving line of credit in February. The lenders will re-determine the credit facility on May 1, and Chaparral expects its borrowing base will be decreased significantly, it said in its annual report.
