Saratoga Bankruptcy | Russell T. Rudy Energy LLC
“Rigzone” reports that the oil price collapse and legal problems have forced Saratoga Resources Inc. to seek protection under Chapter 11. An adverse ruling in arbitration brought by Harvest Operating for $3.7 million apparently was the last straw for Saratoga.
Predictably Chairman and CEO, Thomas Cooke, tried to put a positive spin on the filing indicating that it would avert further action by Harvest and enable Saratoga to file its own counter-claims. In the meantime, Cooke said that its business and employees will not be affected. He went on to say, “We believe that our long-term prospects remain solid, that we continue to have substantial untapped reserves and that our development program will continue to increase our daily production.”
Saratoga holds about 51,000 acres by production along the Louisiana Coast and the Outer Continental Shelf of the Gulf of Mexico. In 2009, hurricane Gustav and falling oil prices forced Saratoga to file for bankruptcy. However, the following year the company had paid its creditors in full and shareholders were able to maintain their interests.
To read the article in its entirety, please go to http://www.rigzone.com/news/oil_gas/a/139231/Low .
