CLEO Energy Corp., NOI

CLEO Energy Corp., a private, junior oil and gas company located in Alberta, filed an NOI on December 8.

The company owns and operates over 200,000 acres of contiguous land in the Western Canada Sedimentary Basin. It lists approximately $24.1 million in liabilities, including approximately $11.5 million in priority and secured debt.

Cleo’s revenue is linked to the productivity of its oil and gas wells, as well as the market price of oil and gas. The company has recently experienced low production, partly due to mechanical failures and subsequently a major theft in its main producing oil and gas fields.

Cleo’s financial difficulties further stem from a variety of factors, including a lack of capital investment to undertake necessary mechanical repairs which has led to the shutdown of Cleo’s main producing fields, ultimately contributing to a decline in production and revenue rates.

Additionally, oil and gas prices have decreased significantly during September 2024. These challenges have placed considerable strain on Cleo, causing monthly revenues to decrease to unsustainable levels.

A&M is the proposal trustee.

Counsel is Gowling WLG for the company.