TexCal Energy Canada Inc., Receivership

TexCal Energy Canada Inc. (“TCEC”), an Alberta-based oil and gas production company, was placed into receivership on July 3 on application by a related secured lender, TexCal Energy Incorporated (“TexCal”), owed approximately $5.3 million.

The receivership proceedings arose out of the previous CCAA proceedings of Razor Energy Corp. and certain related entities, which culminated in a reverse vesting transaction resulting in TCEC becoming the sole shareholder of Razor Energy in December 2024.

In order to fund transaction as well as post-closing operating and working capital requirements, TexCal agreed to lend approximately $14.1 million to TCEC on a secured basis. TexCal has also made cash injections totalling $2.3 million since that time. Following certain repayments by TCEC, TexCal is still owed approximately $5.3 million.

Despite good faith efforts, TCEC has been unable to streamline costs to the point that the company will even come close to breaking even in the foreseeable future.

In addition, on June 5, TexCal received a notice from the Alberta Energy Regulator (“AER”) requiring it to post security of approximately $15.2 million within 30 days and advising that TexCal owed the AER over $1 million in collective administrative and orphan fund levies.

Grant Thornton is the receiver.

Counsel is BLG for TexCal and Cassels for the receiver.