Strategic Oil & Gas (TSX-V: SOG), a Calgary Alberta-based junior oil and gas company, along with its wholly owned subsidiary, Strategic Transmission, had its CCAA proceedings transitioned to a court-appointed receivership on January 28. In early January 2020, the company approached the Alberta Energy Regulator ("AER") with its high level plan of compromise and arrangement to exit the CCAA proceedings. The plan called for, among other things, a payment of $5.0 million to the Orphan Well Association ("OWA") in respect of certain assets the company was seeking to have abandoned and a proposed dividend of $0.10 on the dollar for the company's trade creditors, owed an estimated $10.6 million. In mid-January, the AER notified the company that it was not supportive of the proposed plan. In response, the company advised that it had no further options with respect to a restructuring and planned to wind up its operations and transition its assets to the OWA through a court-appointed receivership. KPMG was appointed receiver of the company's Alberta assets. Alvarez & Marsal is the receiver of the company's assets in the Northwest Territories. Counsel is Dentons for the company, Torys for KPMG, Bennett Jones for GMT Capital, a secured debenture holder and Cassels Brock for the Government of the Northwest Territories.
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.
Accel Canada, a Calgary, Alberta-based oil and gas company, obtained protection under the CCAA on November 22. The company had previously filed an NOI on October 21. PwC is the monitor. Counsel is Lawson Lundell for the company, BLG for the monitor, Bennett Jones for Third Eye Capital and Stikeman Elliott for Stream Asset Financial.
Eagle Energy (TSX-V: EGL), a Calgary, Alberta-based oil and gas company with oil-producing properties in Alberta and Texas, was placed in receivership on November 19 on application by White Oak Global Advisors as administrative agent for a group of lenders collectively owed approximately $31.2 million. For the past two years the company has attempted to combat difficult industry conditions by reducing overhead and selling assets. Despite its efforts, the company has not been able to generate positive cash flow and acknowledges that this is not likely to change in the foreseeable future. FTI was appointed receiver. Counsel is Blakes for the applicant, Bennett Jones for the company and Norton Rose Fulbright for the receiver.
Wolf Coulee Resources, a Calgary, Alberta-based oil and gas company with oil and gas wells located primarily in Southern Alberta, was placed in receivership on November 18 on application by the Orphan Well Association. The company has been in discussions with the Alberta Energy Regulator (AER) for several months in relation to its financial difficulties. In late September, the company advised the AER that it had ceased operations and did not have the ability to shut-in all of its wells. In the interest of public safety, the OWA moved for a receiver to be appointed to ensure the wells are properly maintained and, where possible, sold and placed in the hands of responsible producers. The total abandonment and reclamation obligations relating to the company's assets are estimated to be over $16.4 million. Hardie & Kelly was appointed receiver. Miles Davison is counsel for the applicant.
Kitnuma Petroleum and Kitnuma Projects, two related companies based in Cambridge Bay, Nunavut, filed for bankruptcy on November 5, listing liabilities of $5.5 million and $2.7 million, respectively. Subsidiaries of a 100% Inuit-owned group, the companies provided fuel to residents of Cambridge Bay as well as general contracting and project management services across the Arctic. Deloitte is the bankruptcy trustee.
Houston Oil & Gas, a Calgary, Alberta-based oil and gas company that focused on acquiring and rejuvenating legacy oil and gas assets, was placed in receivership on October 29 on application by the Orphan Well Association. Holding licenses to operate over 1,400 sites in Alberta, the company has been in discussions with the Alberta Energy Regulator (AER) for several months in relation to its financial difficulties. In early October, the company advised the AER that it had ceased operations and did not have the ability to shut-in all of its wells. In the interest of public safety, the OWA moved for a receiver to be appointed to ensure the wells are properly maintained and, where possible, sold and placed in the hands of responsible producers. The total abandonment and reclamation obligations relating to the company's assets are estimated to be over $81.5 million. Hardie & Kelly was appointed receiver. Miles Davison is counsel for the applicant.
ACCEL Energy, a Calgary, Alberta-based oil and gas company, filed an NOI on October 21. Deloitte is the proposal trustee.
Bellatrix Exploration (TSX: BXE), a Calgary, Alberta-based oil and gas company, obtained protection under the CCAA on October 2. Facing declining revenues and increasing liquidity challenges as a result of prolonged difficult market conditions, the company made several attempts to improve its capital structure. In June 2019, the company completed a recapitalization transaction pursuant to a CBCA plan of arrangement that, among other things, reduced its debt obligations by approximately $110.0 million. Despite this, commodity prices have slid lower in the last several months, resulting in a near term liquidity crisis. In light of these challenges, the company sought creditor protection to provide stability for the business, additional time to pursue a sale and investment solicitation process and time to advance potential restructuring alternatives. The CCAA proceedings will also give the company access to much needed interim financing. PwC is the monitor. Counsel is Goodmans for the company and BLG for the monitor.
Bearstone Environmental Solutions, a Calgary, Alberta-based oil and gas and environmental services company, was placed in receivership on August 6 on application by Nations Fund I, owed approximately $5.1 million. The depressed oil and gas prices experienced since 2014 have had a significantly negative effect on Bearstone's business, especially its fluid transportation business in Grande Prairie. Recently, the production curtailment program mandated by the Government of Alberta in November 2018 resulted in a drastic decline in activity, and in December 2018 the decision was made to cease operations at the Grande Prairie location. In consultation with its secured lender, Bearstone's parent company has structured a transaction to sell Bearstone's vacuum and water truck services businesses, as well as its environmental services business, to a related company. The transaction will be completed through the receivership. KPMG was appointed receiver. Counsel is Bennett Jones for the applicant, Osler for the company and Cassels Brock for the receiver.