Oil company Quicksilver Resources files for bankruptcy protection

March 17, 2015, 10:51 PM UTC
High Oil Prices Continue To Drive Gas Prices Steadily Upwards
CULVER CITY, CA - APRIL 25: Oil rigs extract petroleum as the price of crude oil rises to nearly $120 per barrel, prompting oil companies to reopen numerous wells across the nation that were considered tapped out and unprofitable decades ago when oil sold for one-fifth the price or less, on April 25, 2008 in the Los Angeles area community of Culver City, California. Many of the old unprofitable wells, known as "stripper wells", are located in urban areas where home owners are often outraged by the noise, smell, and possible environmental hazards associated with living so close to renewed oil drilling. Since homeowners usually do not own the mineral rights under their land, oil firms can drill at an angle to go under homes regardless of the desires of residents. Using expensive new technology and drilling techniques, California producers have reversed a long decline of about 5 percent annually with an increased crude flow of about 2 1/2 million barrels in 2007 for the first time in years. (Photo by David McNew/Getty Images)
Photograph by David McNew—Getty Images

(Reuters) – Quicksilver Resources and its U.S. units filed for Chapter 11 bankruptcy protection on Tuesday, adding to a list of oil and gas producers who have folded amid low oil prices.

The company listed assets of $1.21 billion and liabilities of $1.35 billion in its bankruptcy petition in a Delaware court.

Quicksilver (KWK) said its Canadian units were not included in the chapter 11 filing.

Quicksilver Resources Canada has signed an agreement with its lenders for forbearance until June 16, 2015, of any default under the agreement arising from the chapter 11 filing.

Master limited partnership Crestwood Midstream Partners, which supplies Quicksilver’s operations in the Barnett shale, expects to actively participate in the bankruptcy proceedings.

Crestwood estimates it had not invoiced about $2.2 million of pre-petition services at the time of the filing.

The company plans to continue providing services to Quicksilver related to existing deals.

Oil prices have slid some 50 percent since June because of excessive supply, weighing down oil and gas companies’ cash levels and raising debt.

BPZ Resources, a Texas-based oil producer filed for bankruptcy protection on Monday, March 9. Oil and gas contractor Cal Dive also filed for bankruptcy protection earlier this month.