Rosehill Resources plans to file for chapter 11 bankruptcy by July 15 to restructure its business after forecasting a loss of $230 million during its first quarter, the Houston Chronicle reported. The Houston-based oil and gas company on Friday said that it signed an agreement with its lenders and major shareholder Tema Oil and Gas to reorganize the business. Rosehill plans to line up $17.5 million of debtor in possession financing to fund its operations through the bankruptcy proceedings with minimal disruptions. Rosehill, an independent oil and gas company formed in 2017 through the combination of Tema Oil and Gas and KLR Energy, has more than 500 drilling locations across 13,000 acres in the Delaware Basin of West Texas and New Mexico. The company last week said that it was delaying filing its first quarter earnings report to the Securities and Exchange Commission, but said it expects a net loss of $230.3 million during the first quarter ended March 31, compared to a net loss of $104.1 million the same period last year. Rosehill expects to write down the value of its assets by $333.8 million during the first quarter because of low oil and gas prices and its lack of financial resources to develop additional wells. The company issued a statement of “going concern,” expressing doubt about the company’s ability to continue operations without restructuring. The company reported a net loss of $30.1 million in 2019, compared with a net income of $118 million in 2018. It had revenue of $302.3 million in 2019, up slightly from revenue of $301.9 million in 2018.
