Freedom Oil and Gas became the latest victim of the oil crash as it filed for bankruptcy protection.
The Houston oil exploration and production company, formerly known as Maverick Drilling Services, filed for Chapter 11 bankruptcy on Monday in federal court in Houston. The company said it was unable to pay its more than $10 million of debt as revenues have plunged during the global coronavirus pandemic. It plans to sell all of its assets to Australian environmental services company Sendero Resources, pending approval from the bankruptcy court.
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Freedom joins other U.S. energy companies, including Whiting Petroleum, Skylar Exploration and Diamond Offshore, that have filed for bankruptcy protection as the coronavirus has spurred a historic oil industry collapse. The pandemic, which has forced businesses to temporarily close and consumers to stay home, has depressed the demand for oil and gas products, causing prices to plummet.
Freedom Oil and Gas, the U.S. subsidiary of Australian company Freedom Oil and Gas Ltd., is an independent oil and gas company focused on leasing, developing and drilling wells in the Eagle Ford Shale in South Texas. The company’s assets consist of about 2,682 acres of oil and gas mineral leases, including 18 producing wells in Dimmit County, southwest of San Antonio.
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