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.
GS ER Canada Inc., a Calgary, Alberta-based energy exploration and production company, filed an NOI on March 11, owing approximately $4.3 million in unsecured liabilities to the BC Oil and Gas Commission. The company attributes its financial difficulties to a variety of factors, including: (1) significant reductions in oil and gas prices and commodity demand caused in part by the effects of the COVID-19 pandemic; (2) declining production rates due to a lack of capital investment; and (3) the inability to undertake certain repairs due to lack of funds. Since 2019, the company has attempted to restructure its financial affairs and made several attempts to sell the company. However, these efforts were unsuccessful, as previous potential purchasers failed to close the transaction. MNP, which was appointed proposal trustee, has engaged Sayer Energy Advisors to carry out a proposed SISP for the company's assets. Counsel is Stikeman Elliott for the company and Lawson Lundell for the proposal trustee.
Copetrex Oil & Gas Co. Ltd., a Calgary, Alberta-based oil and gas company, filed for bankruptcy on March 9, listing approximately $319.3 thousand in assets and $54.0 thousand in liabilities, including $38.2 thousand to Canadian Natural Resources. The company attributes its financial difficulties to various factors, including declining revenues and significant contractual liabilities on its properties. KPMG is the bankruptcy trustee.
Just Energy Group Inc. (TSX:JE), a retail energy provider specializing in electricity and natural gas commodities, with head offices in Mississauga, Ontario and Houston, Texas, filed for protection under the CCAA on March 9. The company and related entities (collectively, the "Just Energy Group") are facing severe short-term liquidity challenges due to the recent unprecedented and catastrophic winter weather event in Texas, which is the Just Energy Group's largest market. The extreme weather event in Texas was colder than anything experienced in decades, causing higher than normal customer demand while also forcing significant supply offline. As a result, the Just Energy Group was forced to balance its demand through spot market purchases. In addition to artificially high electricity costs during the Texas weather event, the Just Energy Group was also exposed to significantly increased ancillary service costs. It estimates that it may have incurred losses and additional costs of up to $312.0 million as a result of the winter storm as well as certain pricing decisions by the Electric Reliability Council of Texas ("ERCOT") and the Texas Public Utility Commission. During these CCAA proceedings, the Just Energy Group will be receiving a US$125.0 million DIP loan from one of its term loan lenders in order to meet its North American obligations, including payments to ERCOT totalling more than $250 million in the near term. If these amounts are not paid, ERCOT can suspend the Just Energy Group's market participation. FTI Consulting was appointed monitor. Counsel is Osler for the Just Energy Group, TGF for the monitor, Torys for the term loan lenders, McCarthy Tétrault for the credit facility lenders, and Cassels for the DIP lender.
Gain Energy Ltd., a Calgary, Alberta-based privately-owned company whose assets consist of producing oil and gas properties in Alberta, Saskatchewan, and British Columbia, filed a Division I Proposal (the "Proposal") on March 8. The company sold substantially all of its oil and gas assets and repaid its senior secured debt in September 2020. The Proposal applies to all affected creditors, whether or not any such affected creditor proves a claim against the company under the Proposal. KPMG is the proposal trustee.
2660807 Ontario Inc., a Brampton, Ontario-based company that operated an Esso gas station and Pizza Pizza restaurant in Tecumseh, Ontario, had its assets and real property placed in receivership on February 12 on application by RBC, owed approximately $2.6 million under a Letter Agreement between the parties, as amended by further agreements (collectively, the "Letter Agreement"). As a result of various events of default by the company under the Letter Agreement, RBC has demanded repayment of the indebtedness. The company, which ceased operations on February 5th, has indicated that it wishes to "hand over the keys" to its business to RBC. BDO was appointed receiver. Counsel is Harrison Pensa for RBC, Flett Beccario for the receiver, and Yonge-Norton Law Chambers for the company.
Calgary Oil & Gas Syndicate Group Ltd., a Calgary, Alberta-based producer of natural gas and natural gas liquids, along with various other related entities (collectively, the "Group"), filed for protection under the CCAA on February 11, 2021, listing approximately $42.89 million in liabilities, including approximately $27 million to Crown Capital Partner Funding, LP. As a junior energy producer, the viability of the Group's business operations is highly dependent upon oil and gas commodity pricing. As such, the Group has been significantly impacted by challenging market conditions in the Canadian oil and gas industry, including the protracted depressed oil and gas pricing, as well as market volatility due to several factors such as the COVID-19 pandemic. BDO was appointed monitor. Counsel is BLG for the Group and MLT Aikins for Crown Capital Partner Funding, LP.
Beaver Lake Resources Corporation, a Calgary, Alberta-based exploration and production company, filed for bankruptcy on January 28, listing approximately $889.8 thousand in liabilities and approximately $nil in realizable assets. Grant Thornton is the bankruptcy trustee.
Salt Bush Energy Ltd., a Calgary, Alberta-based resource company engaged in the production and development of oil and natural gas assets, filed an NOI on January 13, listing approximately $19.9 million in liabilities, including $16.5 million to Whitebark Energy Limited ("Whitebark"). The company attributes its financial difficulties to several factors. Over the last three years, the company made significant capital expenditures in connection with its assets; however, production has not yet matched such expenditures. Low production volumes, declining oil prices, and large operating costs have all contributed to create what is now an urgent need to inject additional capital into the company's operations. In January, Whitebark informed the company that it was no longer willing to fund ongoing operations. In connection with Deloitte, the proposal trustee, the company has developed a SISP which contemplates an Asset Purchase Agreement between the company and Ironbark Energy Ltd., a wholly-owned Canadian subsidiary of Whitebark. During these proceedings, Whitebark will provide up to $150.0 thousand in interim financing to the company. McCarthy Tétrault is counsel to the company.
Glenogle Energy Inc. and Glenogle Energy Limited Partnership (collectively, "Glenogle"), a Calgary, Alberta-based oil and gas exploration and production company, obtained protection under the CCAA on September 8, listing approximately $72.6 million in liabilities, including $51.0 million to HSBC. Glenogle previously commenced NOI proceedings on May 14. Like other oil and gas businesses, the company has suffered due to the global collapse in commodity prices. More recently, global oil and natural gas markets and pricing have suffered precipitous declines as a result of extreme oversupply and an unprecedented drop in demand as a result of COVID-19. Currently, Glenogle requires the stability of the CCAA proceedings to carry out its SISP in a manner that will maximize value as part of its proposal. During these proceedings, HSBC will be providing up to $2.6 million in DIP financing. EY was appointed monitor. Counsel is Bennett Jones for the company, Fasken for the monitor, and Norton Rose Fulbright for HSBC