• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 19 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 4 hours "False Flag Planted In Nord Stream Pipeline, GFANZ, Gore, Carney, Net Zero, U.S. Banks, Fake Meat, and more" - NEWS in 28 minutes
  • 6 days Wind droughts
  • 11 hours ""Green" Energy Is a Scam. It Isn't MEANT to Work." - By James Corbett of The Corbett Report
  • 11 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 4 days Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 2 days Xi Is Set To Be Re-Elected As China’s Leader
  • 8 days Oil Prices Fall After Fed Raises Rates
  • 9 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 13 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
Azerbaijan And Armenia Aim To Draft Peace Treaty

Azerbaijan And Armenia Aim To Draft Peace Treaty

Following clashes on the Armenian-Azerbaijani…

A New Design For Faster Hydrogen Storage

A New Design For Faster Hydrogen Storage

University of Technology Sydney (UTS)…

Shale Giant On The Brink Of Bankruptcy Receives Federal Lifeline

The federal government has allowed bankrupt shale major Chesapeake Energy to stop drilling at more than 100 leases on federal lands without losing ownership of the assets, Reuters has reported, citing data that shows the approvals have been granted since the start of the coronavirus crisis.

The company, according to the data, first applied for permission to suspend drilling across these leases in late April. By mid-May, the Bureau of Land Management had granted it 108 approvals, Reuters reports. The BLM has been granting permission to oil companies to suspend drilling in federal leases without losing their ownership on a case-by-case basis.

However, the suspensions are not indefinite. Most of them expire at the end of this month, Reuters noted. While the BLM could grant an extension, it is unclear whether it can grant one to a company that is effectively bankrupt.

Last week, media reported, citing unnamed sources, that Chesapeake was preparing to file for Chapter 11 bankruptcy protection after it missed a bond payment due Monday, June 15. The missed deadline was the beginning a grace period for negotiations with bondholders, but the company has decided to file for Chapter 11 protection instead, in the coming weeks.

If the bankruptcy filing materializes, it would make Chesapeake the largest shale player to date to go under in the current crisis. But this is not the first time the company has had dramatic troubles. During the last crisis, between 2014 and 2016, Chesapeake risked bankruptcy, but managed to avoid court proceedings through a series of out-of-court debt exchanges.

Chesapeake reported a net loss of $8 billion for the first quarter, up from a net loss of $21 million a year earlier. Its stock and bond prices were pummelled to the ground by the oil price war and the pandemic like the stocks and bonds of so many others but, as many warned, those with the largest debt burdens would be the first to go.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News