Blue Sky Resources Ltd., a Calgary-based oil and gas producer with operations in Alberta and British Columbia, filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act on September 24, 2025, as weakening commodity prices and tightening cash flow left the company unable to meet its liabilities—currently listed at approximately $63.7 million, including $28.4 million to Aces Canada SPV III ULC, as agent, and $9.4 million to the Alberta Energy Regulator (“AER”).

Founded as a privately held exploration and production company, Blue Sky produces roughly 2,850 barrels of oil equivalent per day, with an output mix of 62% natural gas and 38% crude oil. The company’s portfolio spans mature and mid-life wells, many of which require ongoing capital expenditures to maintain production levels.

The company cited a combination of regulatory sanctions, commodity-price weakness, and mounting payables that led to the filing. Beginning in mid-2025, the AER imposed restrictions on Blue Sky’s operations after identifying non-payment of annual Orphan Fund levies and outstanding obligations under the Liability Management Rating (LMR) framework. According to the company, these restrictions, coupled with delayed field approvals, further constrained cash flow and prevented the company from executing transactions that could have improved liquidity. A licence-transfer freeze also eliminated the company’s ability to raise funds through divestitures, leaving it unable to satisfy both regulatory and tax obligations.

The NOI filing was intended to stabilize operations and provide a framework for discussions with regulators and creditors while exploring recapitalization options. Blue Sky continues limited production under the supervision of KSV Restructuring Inc., the proposal trustee, and remains in dialogue with the AER regarding compliance remediation.

DLA Piper (Canada) LLP acts for Blue Sky, while Bennett Jones LLP represents the Proposal Trustee and Borden Ladner Gervais LLP represents Aces.