Financial Trouble | Capital Markets | Private Equity Activity

Venoco Files for Chapter 11 Bankruptcy

By: Venoco Inc.

Share Print Bookmark    |    Wednesday,April 19,2017

Venoco, LLC and its affiliates (TexCal Energy (LP) LLC; Whittier Pipeline Corporation; TexCal Energy (GP) LLC; Ellwood Pipeline, Inc.; and TexCal Energy South Texas, L.P. (collectively, “Venoco”) today announced that it has filed for bankruptcy under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company’s assets are expected to be sold or wound down through the bankruptcy process.

“Today’s filing is the result of unfortunate circumstances impacting the company’s financial strength, including the ongoing closure of Plains All American Pipeline’s Line 901,” said Mike Wracher, Venoco’s COO. “We have pursued a number of market-based and regulatory solutions to address these challenges during the last year. Despite these considerable efforts, our financial position now compels us to take this action.”

“Our employees have helped make Venoco a remarkable company with an unparalleled commitment to operational excellence, safety and support for the communities in which we operate,” continued Wracher. “We appreciate the friends and supporters who helped us become a successful provider of locally produced energy for the people of California.”

Venoco is working with regulators and stakeholders to ensure the safe transition or wind-down of its assets throughout the bankruptcy process. As the Company pursues the sale/disposition of its assets, it expects to conduct business as usual and expects day-to-day relationships with employees, vendors, and customers to continue.

Prior to bankruptcy, Venoco quitclaimed its leases in the South Ellwood Field back to the state, which commences the decommissioning process. Venoco and the State Lands Commission have executed a Reimbursement of Temporary Services Agreement for Venoco to maintain the South Ellwood Field assets until the state designates another operator responsible for managing the safety and security of the assets throughout the decommissioning process.

Additional information is available on Venoco’s website as www.venocoinc.com/restructuring. In addition, court filings and other reorganization documents are available on a separate website administered by Venoco’s claims and noticing agent Prime Clerk LLC at http://cases.primeclerk.com/venoco.