36 Oil and Gas Companies Filed For Bankruptcy In 2015

by Gray on February 19, 2016

in Uncategorized

Law Office of Christopher J. Gray wishes to alert investors to the possibility that recommendations of oil and gas investments by broker-dealers may be unsuitable, depending on the individual characteristics of investors and whether the broker had a reasonable basis for the recommendation.

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According to a Wall Street Journal article, there have been a total of 36 reported oil and gas company bankruptcies in 2015. The price of oil has dropped to $30-$35 per barrel or lower (a ten year low), which is leaving many oil and gas companies vulnerable. The bankruptcy cases so far involve $13 billion in secured and unsecured debt. Sixteen of the bankruptcies were reportedly filed in Texas, four each in Delaware and Colorado and the rest in Louisiana, Alaska, Massachusetts and New York and six in Canada.

Some of the companies that declared bankruptcy include: RAAM Global Energy Co., Endeavour International Corp. (ENDRQ), Quicksilver Resources Inc. (KWKAQ), Sabine Oil & Gas Corp. (SOGCQ), Hercules Offshore Inc. (HEROQ), Cal Dive International Inc. (CDVIQ), Dune Energy Inc. (DUNRQ), BPZ Resources Inc. (BPZRQ), ERG Intermediate Holdings LLC, American Eagle Energy Corp. (AMZGQ), Saratoga Resources Inc. (SARAQ), Milagro Oil & Gas Inc., and Miller Energy Resources Inc. (MILLQ). Canadian companies that entered bankruptcy include Verity Energy Ltd., Gasfrac Energy Services Inc., Southern Pacific Resource Corp., Laricina Energy Ltd., and Shoreline Energy Corp.

Several other companies, although not bankrupt, have reportedly hired restructuring advisors and consultants. These companies include: Vantage Drilling Co. (VTG), U.S. Shale Solutions Inc., Paragon Offshore plc (PGN), Midstates Petroleum Co. (MPO), Swift Energy Co. (SFY), Venoco Inc., Energy XXI Ltd. (EXXI), and Magnum Hunter Resources Corp. (MHR).

When a broker recommends that a client purchase or sell a security, the broker must have a reasonable basis for believing that the recommendation is suitable for the investor. In making this assessment, a broker must consider the investors income and net worth, investment objectives, risk tolerance, and other securities holdings. Recommendations of oil and gas companies with a high risk of loss of principal may be unsuitable for investors who cannot tolerate these risks.

If you believe you have been the victim of stockbroker misconduct, you may wish to consult an attorney to find out more about your legal rights and options. Investors may contact a securities arbitration attorney at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.

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