Pittsburgh-based natural gas driller files for Chapter 11 bankruptcy – WPXI

0

PITTSBURGH – Abarta Oil & Gas Co. LLC, a Pittsburgh-based oil and gas drilling company, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Western District of Pennsylvania on Sunday evening.

The company, also known as Abarta Energy and headquartered at 200 Alpha Drive in Pittsburgh, reported liabilities of $ 25.4 million and assets of $ 4.2 million. In court cases, Abarta Oil & Gas has said it wants to sell its remaining oil and gas assets and end its business which dates back to the late 1970s and included wells in Pennsylvania, West Virginia and Kentucky. It is seeking Alabama bankruptcy laws approval for the sale of its stake in a 1,722-acre natural gas field and gathering pipeline in Bradford County. Its parent company is Abarta Inc., to whom it owes $ 10 million.

By far the largest creditor is Dominion Field Services, a Pittsburgh-based pipeline company whose parent company is energy giant Dominion (NYSE: X). Abarta Oil & Gas owes $ 2.8 million in a settlement to Dominion reached in 2016 when Abarta terminated a gas transportation deal in Pennsylvania. He also owes another pipeline company, BHE Eastern Gas Transmission, $ 170,000 over a deal that was not reached when Abarta Oil & Gas sold oil and gas assets in West Virginia.

In a filing on Monday, Abarata Oil & Gas said its problems started in 2015 during an earlier period of declining natural gas commodities, which dragged on the company as well as what it called in a substantial debt file.

Read more in the Pittsburgh Business Times.

Source link

Share.

About Author

Comments are closed.