Furie Operating Alaska LLC, headquartered in Anchorage, filed a voluntary petition for Chapter 11 in Delaware Aug. 9, listing about $450 million in debt. The company said it plans to sell its assets, which it listed on its petition with an estimated value of less than $50 million, within the next few months.
Furie seeks to obtain "superpriority senior secured postpetition financing in the form of a multiple-draw term loan credit facility in an aggregate principal amount of up to $15 million."
Furie listed two affiliates on the petition - Cornucopia Oil and Gas Co. LLC and Corsair Oil and Gas LLC.
Furie cited uncertainty with Alaska state tax credit reimbursements it has historically received, years of liquidity issues and breaches of credit facilities, construction delays and cost overruns, according to a first-day declaration of Chief Operating Officer Scott M. Pinsonnault.
Furie holds a majority working interest in 35 competitive oil and gas leases in Cook Inlet where it operates a wholly owned offshore natural gas production platform, the declaration said. The facility can accommodate a total of six wells and a production crew of up to 28 workers. As of the petition date, Furie is operating four wells on the production platform. The platform is connected to subsea pipeline that delivers natural gas directly to an onshore processing facility.
Furie's largest debt is $368 million owed on a secured term loan facility administered by private equity entity Energy Capital Partners Mezzanine Opportunities Fund A LP, followed by $75 million owed on a tax credit term loan facility administered by ING Capital LLC. The company owes $1 million in pre-petition royalty obligations, and $8 million in trade debt, the declaration said.
According to the petition, "after any administrative expenses are paid, no funds will be available to unsecured creditors."
- STEVE SUTHERLIN
See story in Aug. 18 issue of Petroleum News, available online Friday, Aug. 16, at PetroleumNews.com
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