A Canadian company that expanded into South Texas in 2012 with a pioneering waterless technique to fracture shale has filed for bankruptcy protection as it seeks to reorganize.
GasFrac Energy Services Inc. of Calgary, Alberta, may be the first company to seek bankruptcy protection among those that established a South Texas presence as drilling in the Eagle Ford Shale boomed.
In comments made last week before the GasFrac bankruptcy was filed, William “Dick” Davis of the law firm Langley & Banack Inc. predicted that there could be an increase in bankruptcy activity in San Antonio this year after a drop in filings in 2014.
“I think there are a lot of people that have overspent with (the) price (of oil) dropping in half,” Davis said. “They’re not going to be able to survive, or they are going to be forced into bankruptcy to reorganize.”
GasFrac filed Chapter 15 bankruptcy in Canada on Thursday and later that day in federal bankruptcy court in San Antonio. A U.S. Chapter 15 case is ancillary to a primary filing in the debtor’s home country.
GasFrac indicated that it has up to 49 creditors and estimated assets of $50 million to $100 million and liabilities of $10 million to $50 million.Continue reading by clicking here.
It was hoped by some that a test of GASFRAC's technology in the Utica shale recently would be the start of something big, but just two months later this announcement has quieted those thoughts.
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