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Fieldwood Energy Files for Chapter 11 Bankruptcy Protection

Published: February 20, 2018 |

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Fieldwood Energy, along with its subsidiaries and certain affiliates, has filed for bankruptcy protection under Chapter 11 in the US, in a bid to restructure its balance sheet by reducing debt.

The firm has made the voluntary filing in the Bankruptcy Court for the Southern District of Texas after agreeing to the terms of a restructuring support with investors that comprise a debt-for-equity swap as well as the purchase of Noble Energy’s Gulf of Mexico assets in a deal worth $710m.

With the filing, Fieldwood plans to reduce current debt by approximately $1.6bn and raise approximately $525m of capital amount through an equity rights offering. It also intends to acquire all deepwater oil and gas assets from Noble Energy.

Fieldwood CEO Matt McCarroll said: “We appreciate the incredible efforts by all parties involved in structuring this unique plan of reorganization, which we expect to allow the Company to emerge from chapter 11 within the next 60 days with a much stronger balance sheet and greater financial flexibility to grow.

“Our goal going into this process was to fix our leverage and liquidity issues while continuing to honor our commitments to all of our business partners, vendors, and employees as well as all of the government agencies that touch our business.”

Proceeds of the rights offering is planned to be used by the company to fund the acquisition, fund the costs and expenses of the Chapter 11 cases, and also general working capital after emergence from the bankruptcy.

The firm expects the acquisition of Noble Energy’s assets to complement and enhance its asset base and operations.

Commenting on the sale, Noble Energy Chairman, President and CEO David Stover said that the sale of Gulf of Mexico assets represents its last major step in its portfolio transformation.

“This has been done to focus our go-forward efforts on those assets that will rapidly grow our cash flows and margins, primarily the U.S. onshore business and the Eastern Mediterranean.”

Source: Energy Business Review


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