In this week's news, the U.S. rig count stayed the same as the previous week, Arsenal Energy announced it has sold its oil and natural gas properties in the U.S., and Hercules Offshore works out an agreement to avoid bankruptcy
The number of rigs seeking oil and natural gas in the U.S. last week stayed even at 404, according to data released by oilfield services company Baker Hughes on May 27.
The number of rigs seeking oil declined by two to 316 last week, but natural gas rigs increased by two to 87. One rig was listed as miscellaneous. A year ago 875 rigs were active.
Alaska, Kansas and North Dakota all lost a rig, while Oklahoma went up by two and Ohio was up one.
Arkansas, California, Colorado, New Mexico, Pennsylvania, Texas, Utah, West Virginia and Wyoming all stayed even.
Hercules Offshore Works Out Agreement With Lenders Before Bankruptcy
For the second time in less than a year, oilfield services company Hercules Offshore has worked out an agreement with lenders before seeking Chapter 11 bankruptcy protection.
This time, however, the company is selling assets to pay off investors, according to a story in the Daily Reporter in Greenfield, Indiana.
In August 2015, the company field for bankruptcy and emerged in November after restructuring with a new $450 million facility. The filing showed that the Houston-based company had $1.3 billion in debt and $546.3 million in assets, at the time.
Under the new restructuring plan, Hercules plans to maintain employee wages and benefits while paying creditors.
Arsenal Energy Sells U.S. Properties
Arsenal Energy Inc. has unloaded all its U.S. oil and natural gas properties, including its Bakken Shale assets, to pay down debt, according to the Associated Press.
The Calgary, Alberta-based company said May 27 that it sold its U.S. assets to an undisclosed company for $34 million.
In addition, the company says it has entered a letter of intent to sell 250 barrels of oil equivalent per day of Canadian production for $8.7 million.