December 6, 2019
Traverse Energy (TSX-V: TVL), a Calgary, Alberta-based oil and gas company, was placed in receivership on December 6 on application by ATB, owed approximately $6.5 million. In 2017, the company completed a new well at a cost of over $9.0 million. Since completion, however, the new well only produced minor recoveries of oil, and in June 2018 management completely wrote off the asset. This unsuccessful project contributed to an increasingly tight cash flow situation for the company, with restricted capital available for capital expenditures and revenues declining generally as a result of industry conditions. Starting in early 2019, the company attempted to sell its assets with the assistance of Sayer Energy Advisors and subsequently GMP First Energy, but these attempts were unsuccessful, and by November the company consented to the appointment of a receiver. EY is the receiver. Counsel is MLT Aikins for the applicant and McCarthy Tétrault for the receiver.