In a press release posted to the California-based independent’s Web site today, Pacific Energy cited falling oil prices over the past five months combined with its existing debt load and weak cash flow as the reasons behind the decision to seek Chapter 11 protection.

Chapter 11 bankruptcy is designed to rehabilitate the finances of a company or individual through a court-approved reorganization plan that protects against creditor lawsuits.

Through a subsidiary, Pacific Energy produces oil and gas from several fields on the west side of Cook Inlet including Redoubt Shoal, West Foreland and West McArthur River.

Pacific Energy also holds a minority interest in several other oil and gas fields operated by Chevron, and maintains a 50 percent share of the Cook Inlet Pipeline Co.

Following more than a year of unsuccessfully trying to explore the Corsair unit, Pacific Energy recently farmed out the leases in the offshore unit to Texas-based Escopeta Oil.

Pacific Energy acquired the Alaska assets of Forest Oil in August 2007.

See story in March 15 issue available online at noon Friday, March 13, at www.PetroleumNews.com