Page 11 - NorthAmOil Week 46

NorthAmOil
NEWS IN BRIEF
NorthAmOil
UPSTREAM
Legacy Reserves
announces confirmation of
plan of reorganisation
Legacy Reserves and certain of its subsidiaries announced today that the US Bankruptcy Court for the Southern District of Texas confirmed the company’s joint Chapter 11 plan of reorganisation.
Under the terms of the confirmed plan, at emergence the company will receive $256.3mn of new capital from backstopped equity commitments and a rights offering.
The consummation of the plan is subject to the satisfaction or waiver of several conditions. The company expects to emerge from Chapter 11 within the next 30 days. LEGACY RESERVES, November 15, 2019
Yuma Energy announces
2019third-quarterfinancial
results
Yuma Energy today announced its financial results for the third quarter ended September 30, 2019.
The 2019 third quarter balance sheet reflects the extinguishment of $34.7mn
of senior secured bank debt, which was purchased by an affiliate of Red Mountain Capital Partners, and other liabilities as part of the restructuring of Yuma’s existing senior credit facility. As previously disclosed and
as part of the Restructuring and Exchange Agreement dated September 30, 2019, by and among Yuma, Red Mountain and certain of their affiliates, Yuma and Red Mountain entered into a loan modification agreement on September 30, 2019 which modified
Yuma’s existing credit agreement by reducing the outstanding principal balance from $32.8mn to $1.4mn, forgiving approximately $31.4mn plus accrued and unpaid interest and expenses, and hedge loss liability. This amount of forgiveness from the reduction
in principal balance, accrued and unpaid interest and hedge loss liability has been recorded to additional paid-in-capital on the company’s balance sheet. As a result of the loan modification agreement, the company reduced its total current liabilities to $11.9mn as of September 30, 2019 from $44.2mn as
of December 31, 2018. Total liabilities were $27.7mn as of September 30, 2019 compared to $55.6mn as of December 31, 2018.
YUMA ENERGY, November 14, 2019
MIDSTREAM
Whistler Pipeline
consortium announces
bindingopenseasonforthe
Whistler pipeline
Whistler Pipeline today announced the beginning of a binding open season to solicit commitments for the remaining capacity on the Whistler pipeline. The Whistler pipeline will transport approximately 2bn cubic feet per day of natural gas through approximately 450 miles of 42-inch pipeline from Waha, Texas, to the Agua Dulce area in South Texas.
The open season will commence on Friday, November 15, 2019 and conclude at 5:00 PM CST on Monday December 16, 2019. Whistler Pipeline may, at its sole discretion, extend
the duration of the open season at any time during the open season.
Whistler Pipeline asks that interested shippers submit, confidentially, a completed
service request form.
WHISTLER PIPELINE, November 15, 2019
Tallgrass Energy announces
open season for expansion
on Pony Express pipeline
Tallgrass Energy, through its affiliate Tallgrass Pony Express Pipeline, today announced
a binding open season soliciting shipper commitments for crude oil transportation from a new origin near Carpenter, Wyoming, to Pony Express destinations in Colorado.
Based on commitments received in this binding open season, Pony Express plans to build approximately 25 miles of new 12-inch pipeline from the Hereford origin to the new origin point in Wyoming, expanding capacity from Wyoming to Sterling, Colo., on the Pony Express system. Pony Express expects the new pipeline to be in-service in Q2 2020.
The open season will run from November 20, 2019, to January 20, 2020.
TALLGRASS ENERGY, November 19, 2019
Gunvor reportedly hires
Russian tanker for loading
of US LNG cargo
Commodity trader Gunvor has hired the Marshal Vasilevskiy vessel from Russia’s Gazprom for the loading of an LNG cargo from the US, Reuters reported two industry sources as saying.
The vessel was previously leased to Austria’s OMV, which had said it would be using the tanker until November.
Refinitiv Eikon data show that the tanker
– a floating storage and regasification unit (FSRU) that can also act as an LNG vessel
– departed from the port of Rotterdam on November 4. It is due to arrive at the Sabine Pass LNG terminal in Louisiana on November 26, with loading scheduled for November 29.
The hiring of the tanker could prove awkward for Russian President Vladimir Putin, who has previously complained that US LNG is undercutting gas exports from his country.
Indeed, Gazprom’s deliveries of pipeline gas to Europe are expected to fall this year from a record high of more than 200bn cubic metres in 2018, on the back of European efforts to reduce the continent’s dependence on Russian gas and diversify sources of supply.
Week 46 20•November•2019
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