Teton Energy Files for Bankruptcy With Plan Sponsor
On Sunday, Teton Energy Corporation and seven affiliates filed for chapter 11 protection in Delaware. Teton's common stock trades under the symbol 'TEC'. Teton was formed in 1996 and initially focused its operations on oil and gas exploration and production in Western Siberia, Russia. However, in 2004, Teton sold its Russian operations to its partner. Since that time, its operations have been focused in the United States.
According to a declaration of Teton's CFO filed with the bankrupcy court, the companies' primary assets are hydrocarbon leasehold interests and they are currently party to over 3,500 leases, of which 175 are active. In total, the companies hold leasehold interests in 318,000 net acres in the Central Kansas Uplift, eastern Denver-Julesburg Basin (Colorado), and Big Horn Basin (Wyoming). During August of this year, Teton's average production was 449 boe/d, with 87% of Teton's production being crude oil.
The companies blamed their bankruptcy filing on a "severe liquidity crisis." The purpose of the bankruptcy cases is to effectuate a comprehensive restructuring pursuant to which Rise Energy Partners, LP will acquire 100% of the equity in a reorganized Teton by acting as a sponsor under a Plan of Reorganization. To that end, Teton and Rise Energy Partners II, LLC have entered into a Plan Sponsorship Agreement and Teton filed a proposed Plan of Reorganization with the bankruptcy court. The proposed transaction with Rise is subject to a competitive bidding and auction process, subject to court approval of proposed procedures.
netDockets has made a complimentary copy of the first day declaration of Teton's CFO, Jonathan Bloomfield, available on JDSupra.
About netDockets:
With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.
Learn more and sign up for a free trial account by visiting http://www.netdockets.com/. In addition, please contact us directly to learn more about special free trial and payment options for mid-size and large law firms. Contact information can be found on our JDSupra profile page and at http://www.netdockets.com/.
According to a declaration of Teton's CFO filed with the bankrupcy court, the companies' primary assets are hydrocarbon leasehold interests and they are currently party to over 3,500 leases, of which 175 are active. In total, the companies hold leasehold interests in 318,000 net acres in the Central Kansas Uplift, eastern Denver-Julesburg Basin (Colorado), and Big Horn Basin (Wyoming). During August of this year, Teton's average production was 449 boe/d, with 87% of Teton's production being crude oil.
The companies blamed their bankruptcy filing on a "severe liquidity crisis." The purpose of the bankruptcy cases is to effectuate a comprehensive restructuring pursuant to which Rise Energy Partners, LP will acquire 100% of the equity in a reorganized Teton by acting as a sponsor under a Plan of Reorganization. To that end, Teton and Rise Energy Partners II, LLC have entered into a Plan Sponsorship Agreement and Teton filed a proposed Plan of Reorganization with the bankruptcy court. The proposed transaction with Rise is subject to a competitive bidding and auction process, subject to court approval of proposed procedures.
netDockets has made a complimentary copy of the first day declaration of Teton's CFO, Jonathan Bloomfield, available on JDSupra.
About netDockets:
With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.
Learn more and sign up for a free trial account by visiting http://www.netdockets.com/. In addition, please contact us directly to learn more about special free trial and payment options for mid-size and large law firms. Contact information can be found on our JDSupra profile page and at http://www.netdockets.com/.
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