Oil & Gas producer in both conventual and non-conventual wells and properties including gathering midstream owned leases located in Kentucky, West Virginia, Pennsylvania and Ohio. Subsidiary of a much larger corporation. 7o0 wells through 37 projects and basin projects as KY pipeline. $500 million in annual sales. $60 million in debt.
- Senior bank debt and preferred stock totaling $60 million.
- Gathering Agreement had default, had settlement issues and in litigation with Dominion Gas.
- Partnership issues with joint operator.
- Well Abandonment liability set at over $100+ million.
- Liquidity issues caused by down pricing.
- Ownership and management frustration with the business.
- MorrisAnderson was retained as CRO to evaluate going concern situation and determine path forward.
- Negotiated an extended amendment with senior lender and extension to restructure the operations.
- Negotiated a forbearance with Dominion to stay litigation under the Gathering Agreement and allow AOG time to restructure.
- Negotiated with joint operator for release and dissolution of AtGas partnership giving AOG full rights in the largest conventional operations.
- Reduce LOE’s and operating cost to breakeven with forward sales.
- Negotiated short-term funding from parent company to complete restructuring plan.
- Negotiated and agreed to a settlement with senior lender to reduce and restructure senior debt and discount preferred stock ownership.
- Negotiated full release from joint partner which increased operational value, reduced over $10 million in disputed liabilities and allowed for rights to marker projects and retain sales value.
- Negotiated contingent resolution and deferment of Gathering Agreement liability.
- Fully paid back parent borrowings and outstanding commitments by senior lender.
- Achieved operating breakeven.
- Sold off idle assets, negotiated resolution with lease holders on material well abandonment charges.
- Contract with buyer of largest portion of conventional operated and non-operated assets.
- Retained broker to market all operations.
- Avoided bankruptcy and other high-cost proceedings. AOG is in a position to payoff all outstanding creditors and pay full severance to employees at completion of sale.