Page 15 - NorthAmOil Week 16

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NEWS IN BRIEF
NorthAmOil
gathering lines, pipelines, and related facilities and equipment. These midstream assets
will allow Empire to control the marketing
of its produced natural gas and natural gas liquids, as well as optimise the operations of its oil production. The system also has ample surplus capacity to accommodate future growth in the area.
EMPIRE PETROLEUM CORPORATION, April 16, 2020
DOWNSTREAM
PBF Energy completes sale of five operating hydrogen plants for $530mn to Air Products
PBF Energy today announced it has completed, and received the $530mn consideration for, the sale of five steam methane reformer (SMR) hydrogen production plants to Air Products. PBF Energy has entered into long-term supply agreements with Air Products at the Martinez, Torrance and Delaware City refineries.
“PBF Energy is pleased to have worked cooperatively with Air Products, a global leader in the supply of hydrogen to refineries, to complete this transaction and expand
the long-term relationship between our two companies,” said PBF’s chairman and chief executive officer Tom Nimbley.
Air Products is known as a leader in the supply of hydrogen to refineries in order to make cleaner burning transportation fuels. Hydrogen is widely used in petroleum refining processes to remove impurities found in crude oil such as sulphur, olefins and aromatics to meet product fuels specifications. Removing these components allows gasoline and diesel to burn cleaner and thus makes hydrogen
a critical component in the production of cleaner fuels needed by modern, efficient internal combustion engines.
PBF ENERGY, April 20, 2020
MOVES
BDC to increase support to
Canadian oil and gas sector
companies
As part of a Team Canada response to the COVID-19 crisis, the Government of
Canada, through BDC, Canada’s bank for entrepreneurs, and Export Development Canada (EDC) will make available additional financial capacity to help support Canada’s oil and gas sector.
The commercial support, being developed by BDC and EDC, is intended to help Canada’s exploration and production, mid- stream, and oil-field companies navigate these uncertain times. The new measures are aimed at helping bring liquidity into the market in order to manage the challenges companies are facing due to the global pandemic and decline in oil prices.
“BDC is here to support Canadian entrepreneurs in good times and in bad. Working with EDC, we are committed to helping businesses, big and small, get through this incredibly challenging time,” said Michael Denham, President and CEO of BDC.
“Our focus is to bring liquidity to Canadian companies, including those in the oil and gas sector, to help them stay afloat and keep their employees working.”
As part of today’s announcement,
BDC will make available higher risk financing for Canada’s oil and gas sector, to strengthen companies’ financial position
and complement financing available from EDC and other financial institutions. These commercial loans, ranging in size between CAD15mn and CAD60mn each, are meant to be used to fund operational cashflow needs for a 12-month period which in turn will ensure a degree of continuity of operations during this period of uncertainty.
Eligible companies must have been financially viable prior to the current economic environment.
BDC, April 17, 2020
Yuma Energy files for Chapter 11 protection
Yuma Energy, together with its subsidiaries Yuma Exploration and Production Company, Davis Petroleum and the Yuma Companies, announced today that they have filed voluntary Chapter 11 petitions for relief under the United States Bankruptcy Code in the US Bankruptcy Court for the Northern District of Texas.
During the first quarter of 2020, Yuma’s cash position deteriorated, and its cash flow from operations is no longer sufficient to cover its operating costs. The company plans to continue to operate its business in the normal course during the court-supervised bankruptcy process.
The debtors intend to use the Chapter 11 process to implement the orderly liquidation
of their assets in an effort to maximise values and recoveries to stakeholders. The debtors intend to seek immediate court approval
to conduct an auction for substantially
all of their assets, which primarily consist of operating and non-operating interests
in several properties in Louisiana, Texas, Wyoming and Oklahoma. The auction is expected to occur within the first 90 days of the bankruptcy filings.
The debtors may negotiate to obtain a new debtor-in-possession financing to provide working capital to support normal operations and the sale of assets during the Chapter 11 process. However, it is not certain that these negotiations to obtain DIP financing will be successfully completed.
Separately, effective on April 10, 2020, Anthony C. Schnur resigned from his positions as interim chief executive officer, interim chief financial officer, and chief restructuring officer of the company. Shortly after with the effectiveness of Mr. Schnur’s resignations, the company engaged Ankura Consulting Group as its financial advisor. Mr. Schnur was recently hired by Ankura, and Mr. Schnur will oversee the operation of the debtors during the bankruptcy process as he provides his services to the company through Ankura.
YUMA ENERGY, April 15, 2020
Callon Petroleum Company receives continued listing standard notice from NYSE and provides response and operational update
Callon Petroleum Company today announced that on April 10, 2020, it received formal notice from the New York Stock Exchange (NYSE) that the average closing price of Callon’s shares of common stock had fallen below $1.00 per share over a period of
30 consecutive trading days, which is the minimum average share price for continued listing on the NYSE.
As required by the NYSE, Callon has responded to the NYSE regarding its intent to cure the deficiency to return to compliance with the NYSE continued listing requirements within the six-month cure period. Callon intends to put forth a proposal for a reverse stock split in connection with its annual meeting of shareholders.
CALLON PETROLEUM COMPANY, April 16, 2020
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