Erin Energy Corporation Announces Restructuring Filing
26 Avril 2018 - 3:12AM
Business Wire
Erin Energy Corporation and certain of its subsidiaries
(together "Erin Energy" or the "Company") (NYSE American:ERN)
(JSE:ERN), today announced that they had filed voluntary petitions
under Chapter 11 of the United States Code (the "Code") in
the United States Bankruptcy Court for the Southern District
of Texas, Houston Division (the "Court") to pursue a plan of
reorganization (the "Reorganization Plan").
Erin Energy and its subsidiaries will continue to operate under
the jurisdiction of the Court and in accordance with the
applicable provisions of the Code and the orders of the Court. To
assure ordinary operations, Erin Energy is seeking approval from
the Bankruptcy Court for a variety of motions, including
authority to maintain bank accounts and other customary relief.
Erin is in the process of looking for a source of debtor in
possession financing to provide it with the necessary working
capital to continue its operations and move towards a successful
Reorganization Plan.
Subject to the approval of the Court, the Company plans to file
a Reorganization Plan with the Court in the near term with a goal
to work expeditiously with all parties involved to put together a
plan that will result in Erin Energy’s emergence from Chapter 11 as
soon as practically possible.
Femi Ayoade, Erin Energy’s CEO commented, "We will work
diligently with all parties involved to complete the restructuring
as quickly as possible so as to restructure all of the Company’s
debt obligations in order to achieve financial stability and
reposition Erin Energy with a strengthened liquidity position to
execute on our extensive asset development opportunities."
Mr. Ayoade added: "The Company recently successfully drilled a
discovery well in the Miocene formation in its offshore Nigeria
licenses on a structure that independent analysis estimates could
hold over a billion barrels of reserves. In The Gambia, Erin Energy
holds a 20% interest in blocks A2 & A5 containing potentially,
according to its Operator, over 800 million barrels of reserves. A
well will be drilled there in the 4th Quarter of this year and the
Company is being carried and has no obligation to fund that
well."
In Ghana, work is in progress to acquire a marine 3D seismic
survey later this year. The newly acquired 3D data will be used for
the appraisal well drilling and development planning.
Okin Adams LLP is acting as bankruptcy counsel to Erin
Energy.
The information contained in this press release is for
informational purposes only and does not constitute an offer to
buy, nor a solicitation of an offer to sell, any securities of the
Company, nor does it constitute a solicitation of consent from any
persons with respect to the transactions contemplated hereby and
thereby. While Erin Energy expects the restructuring will take
place in accordance with the Reorganization Plan, the debtor in
possession will make all efforts towards successful completion of
this restructuring.
Erin Energy Corporation
Erin Energy Corporation is an independent oil and gas
exploration and production company focused on energy resources in
sub-Saharan Africa. Its asset portfolio consists of 5 licenses
across 3 countries covering an area of 6,100 square kilometers
(~1.5 million acres), including current production and other
exploration projects offshore Nigeria, as well as exploration
licenses offshore Ghana and The Gambia. Erin Energy is
headquartered in Houston, Texas, and is listed on the New York and
Johannesburg Stock Exchanges under the ticker symbol ERN.
For more information about Erin Energy or to request a hard copy
of the Company’s most recent complete audited financial statements
free of charge, please call +1 713 797 2940 or visit www.erinenergy.com.
Forward-Looking Statements
This news release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements,
other than statements of historical fact, concerning activities,
events or developments that the Company expects, believes or
anticipates will or may occur in the future are forward-looking
statements. Although the Company believes the expectations
reflected in these forward-looking statements are reasonable, they
involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect.
The Company’s actual results could differ materially from those
anticipated or implied in these forward-looking statements due to a
variety of factors, including the Company’s ability to successfully
finance, drill, produce and/or develop the wells and prospects
identified in this release, and risks and other risk factors
discussed in the Company’s periodic reports filed with the
Securities and Exchange Commission. All forward-looking statements
are expressly qualified in their entirety by this cautionary
statement. You should not place undue reliance on forward-looking
statements, which speak only as of their respective dates. The
Company undertakes no duty to update these forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20180425006931/en/
Erin Energy CorporationLionel McBee, +1 713-797-2960Director,
Investor Relations and Corporate Communicationslionel.mcbee@erinenergy.com
Erin Energy (CE) (USOTC:ERINQ)
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