Kaisen Energy Corp.

Kaisen Energy Corp., a Calgary, Alberta-based upstream oil and gas company, obtained protection under the CCAA on December 8. Due to the impacts of COVID-19 and significant commodity price volatility, Kaisen was obligated to shut-in a significant portion of its operations to reduce costs, and its production dropped significantly before eventually rebounding to approximately 50% production capacity in November 2021. In addition to these operational challenges, Kaisen: (a) suffered material losses in 2018 and 2019 in connection with a hedging plan it then had in place, and (b) has had its credit facilities significantly reduced by its senior secured lender resulting in its available credit decreasing from $5.5M in Q4 2017 down to $1.85M in Q4 2020. EY was appointed monitor. Counsel is MLT Aikins for the company and Norton Rose for the monitor.

Elcano Exploration Inc., Elcano Exploration Ltd. & Elcano Energy Partnership

Elcano Exploration Inc., Elcano Exploration Ltd. & Elcano Energy Partnership, Calgary, Alberta-based oil and gas companies, were placed in receivership on November 24, on application by Tallinn Capital Energy Corp., owed over $6 million. It appears that Tallinn intends to make a credit bid for the companies' Manitoba assets in the receivership proceedings. The companies did not oppose the receivership application, but sought approval of an order permitting the receiver to execute an RVO term sheet and market an RVO transaction being proposed by the companies, which would be funded by their outside investor. The receivership order granted does not appear to address the relief sought by the companies, and no endorsement appears to have been released at this point. Grant Thornton was appointed receiver. Counsel is Bennett Jones for the companies.

CUDA Energy Inc., CUDA Oil and Gas Inc., CUDA Energy LLC and Junex Inc. (collectively, “CUDA”)

CUDA Energy Inc., CUDA Oil and Gas Inc., CUDA Energy LLC and Junex Inc. (collectively, "CUDA"), a Calgary, Alberta-based group of oil and gas companies with assets in Alberta and the State of Wyoming, had a receiver appointed on November 18, on application by PwC as receiver of Bridging Finance Inc. ("Bridging"), owed approximately $57 million. Bridging has been providing financing to CUDA since 2018. CUDA has engaged in several formal refinancing processes and asset sale processes since 2019 in an attempt to fund working capital requirements related to its US assets or to refinance the loan agreement. On July 9, the operator of the US assets issued a default letter and filed a lien against CUDA in the amount of approximately US $2 million for a failure to pay unit expenses under the operating agreement. This constitutes an event of default under the loan agreement with Bridging. As a result of the foregoing and various other issues outlined in Bridging's materials, Bridging and PwC as receiver of Bridging had serious concerns about the ability of management to continue the operations of CUDA and develop a plan for the repayment of the outstanding indebtedness. Chapter 15 proceedings will also be commenced in the State of Wyoming. FTI was appointed receiver. Counsel is DLA Piper for PwC as receiver of Bridging Finance Inc.; Blakes for Tallinn Capital Energy Limited Partnership, by its general partner, Tallinn Capital Energy Corp. (a subordinate secured creditor); and Bennett Jones for FTI in it capacity as receiver of CUDA.

Alcan Fluid Disposal Ltd.

Alcan Fluid Disposal Ltd., a Prince George, British Columbia-based oil and gas company which operated two wells for the purpose of wastewater disposal, filed an assignment in bankruptcy on September 27, listing over $2 million in debts, including approximately $130,000 for estimated reclamation costs. The company has not been an operating entity for approximately 10 years before the filing. MNP is the bankruptcy trustee.

Abbey Resources Corp.

Abbey Resources Corp., a Calgary, Alberta-based owner and operator of over 2,000 shallow gas wells in Swift Current, Saskatchewan, obtained protection under the CCAA on August 13, listing approximately $15.3 million in liabilities, including $5.2 million for municipal taxes, $6.5 million owed to surface rights holders, and $1.6 million owed under leases with mineral rights holders. Since the company acquired the wells via three transactions in 2016 and 2017, the price the company has been able to sell its production from those wells has not been sufficient to pay its debts. While the company has been able to cover its day-to-day operating costs, it cannot consistently pay land taxes to the municipalities and one First Nation where the wells are located. Opponents to the CCAA application alleged, among other things, that the company was not acting in good faith. In particular, they suggested that the company knew from the outset that the operations it established in the three asset acquisitions would not generate sufficient cash flow to pay its debts as they become due. Moreover, the opponents stated that they have lost confidence in the company's management. Despite strong opposition by the regulator, the Saskatchewan Minister of Energy (the "Minister"), the court also approved the inclusion of a provision in the initial order staying administrative action by the Minister for the company's failure to pay certain funds. MNP was appointed monitor. Counsel is DLA Piper for the company, McDougall Gauley for the monitor, Robertson Stromberg for the Minister, Miller Thomson for the Rural Municipality of Lacadena No. 28, Kanuka Thuringer for the Rural Municipality of Miry Creek No. 229 and MLT Aikins for Carry the Kettle Nakoda Nation Band No. 76.

Stratford Petroleum Inc.

Stratford Petroleum Inc., a Stratford, Ontario-based company that owns and operates an Ultramar gas station and related convenience store in Stratford, was placed in receivership on July 9 on application by BMO, owed over $2.5 million. BMO, which provided a real estate financing loan to the company, began to have concerns in January 2021 when the company missed a payment. The company's financial results were also a concern with gas volumes down 60% from projections and convenience store sales down 70%. After BMO learned that the gas station was under a conditional agreement of purchase and sale ("SPA"), BMO demanded repayment for all amounts outstanding from the company. However, the SPA did not close on the expected date and the company's principals advised BMO that the sale process was "stuck" because the company's gas supplier refused to waive a right of first refusal in connection with the business. At present, there is no closing date and the loan has been in default for six months. Rosen Goldberg was appointed receiver. Chaitons is counsel to BMO.

Kate Energy Holdings Inc.

Kate Energy Holdings Inc., a Calgary, Alberta-based power producer, was placed in receivership on July 13 on application by Campus Energy Partners LP ("Campus"), owed approximately $10.8 million. In 2019, the company and Campus entered into 1) an LNG Supply Agreement whereby the company agreed to purchase liquified natural gas from Campus, and 2) an equipment lease agreement whereby the company agreed to lease a trailer from Campus. However, the company failed to comply with the express terms of the supply agreement and equipment lease agreement when it did not make payments to Campus when due. Hudson & Company (GRIP) Insolvency Trustees was appointed receiver. Counsel is Torys for Campus and Dentons for the receiver.

Clearbeach Resources Inc. and Forbes Resource Corp. (the “Companies”)

Clearbeach Resources Inc. and Forbes Resource Corp. (the "Companies"), a London, Ontario-based business that owns and operates 402 oil and natural gas wells in Southwestern Ontario, obtained protection under the CCAA on May 20. In 2020, facing pressure from their senior lender, Pace Savings & Credit Union Limited ("Pace"), the Companies commenced NOI proceedings under the BIA to address the indebtedness to Pace as well as other operational issues, including environmental obligations in respect of various wells. The NOI proceedings were extended multiple times. The Companies were able to negotiate a settlement with Pace to continue their NOI proceedings under the CCAA. During these proceedings, the Companies will consult with the Ministry to address environmental stewardship obligations and consider the viability of presenting a plan to their creditors and stakeholders. MNP was appointed monitor. Counsel is Bennett Jones for the Companies, Aird & Berlis for Pace, and Loopstra Nixon for the monitor.

Salt Bush Energy Ltd.

Salt Bush Energy Ltd., a Calgary, Alberta-based resource company engaged in the production and development of oil and natural gas assets primarily located in the Wizard Lake Oilfield, obtained protection under the CCAA on May 19. In January 2021, the company filed an NOI, listing approximately $19.9 million in liabilities, including $16.5 million to Whitebark Energy Ltd. ("Whitebark"). Deloitte, which consented to act as proposal trustee, commenced a stalking horse marketing and sales process for the company's assets (the "SISP"). However, since no qualified bids were received before the bid deadline, the SISP was automatically terminated and the company filed an application seeking the approval of an Asset Purchase Agreement between the company and Ironbark Energy Ltd. (the "Stalking Horse APA"). The Stalking Horse APA will be effected pursuant to a Reverse Vesting Order and the proposal proceedings commenced by the company under the BIA will be continued under the CCAA. Deloitte was appointed monitor. Counsel is McCarthy Tétrault for the company and Dentons for the monitor.

Sanling Energy Ltd.

Sanling Energy Ltd., an oil and gas company with licences to operate 2,279 wells, 2,170 pipelines and 267 other facilities across Alberta, and 94 well permits, 94 facility permits and 53 pipeline permits for infrastructure located in British Columbia, was placed in receivership on April 23, 2021, on application by the Orphan Well Association ("OWA") and the British Columbia Oil and Gas Commission ("BC OGC"). The AER and the BC OGC issued several escalating orders to the company regarding its non-compliance with reclamation obligations, abandonment orders and a number of regulatory infractions. On February 1, 2021, the BC OGC suspended the company's permits, and on March 4, 2021, the AER ordered that the company shut in all of its assets subject to AER licences. As of April 15, 2021, the company has estimated deemed liabilities of approximately 67.6 million owing to the b and approximately 2.8 million owing to the BC OGC. PwC was appointed receiver. Counsel is MLT Aikins for the OWA and the BC OGC.