Oil and gasoline driller Templar Electrical power has submitted for Chapter 11 bankruptcy to effectuate a sale of its belongings amid plunging commodity price ranges.
The organization had begun the sale system in February, attracting a dozen indications of interest by mid-April. But it reported Monday that it had made a decision to use the bankruptcy system to consummate a sale.
Given that February, “the volatility in oil and pure gasoline markets has been exacerbated by the unexpected blended affect of the COVID-19 pandemic and the oil price war involving Saudi Arabia and Russia, with oil price ranges descending to the lowest amount considering that 2002,” CEO Brian Simmons reported in a court docket declaration.
“Independent oil and gasoline organizations these types of as [Templar] have been particularly tough-hit, as their revenues mostly are generated from the sale of unrefined oil, pure gasoline, and [pure gasoline liquids],” he observed.