Bankruptcy / Restructure Update | Financial Trouble | Capital Markets

DJ Basin Operator PetroShare Corp. Files Chapter 11

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   |    Wednesday,September 04,2019

PetroShare Corp. has filed for bankruptcy.

The company's operations are focused on the DJ Basin / Niobrara.

Stephen J. Foley CEO, of PetroShare, stated “The new Colorado regulatory environment governing oil and gas permitting in the state and the associated uncertainty on rule-making has made it very difficult to attract new capital investment in this sector. We are filing a voluntary Chapter 11 petition in order to proceed with the orderly recapitalization or sale of some or all of the Company’s assets and to continue to pay active vendors, suppliers and other ongoing business expenses without interruption during the process.” Mr. Foley continued, “Unfortunately, the collateral damage of Senate Bill 181 has manifested itself in the slowdown of the state’s oil and gas sector, resulting in job losses.”

Frederick J. Witsell, President stated, “We believe the Colorado oil and gas industry can work with all stakeholders in the implementation of the new regulatory rules. However, in spite of our quality asset base, our virtually zero-emissions facility design and our Shook Pad production trending above our type curves, oil price volatility coupled with the delay in the new rule making process has created uncertainty in the current investment environment in Colorado oil and gas development.”

Advisors

Polsinelli PC is acting as legal counsel for the company. MACCO Restructuring Group LLC is acting as financial advisor. Mr. Drew McManigle from MACCO, has been retained by the Company as its Chief Restructuring Officer.