Energy & Exploration Partners files for bankruptcy

US independent Energy & Exploration Partners filed for Chapter 11 bankruptcy protection on Monday, listing debts of $10 billion and assets worth $500 million-1 billion.

The company’s exploration and production activities are centred in East Texas, Colorado and Wyoming. The exploration boom that began in these three states in 2005 has slowed significantly with the oil price crash of late-2014, which has lasted since.

The company’s debt reorganisation comes at a time when a barrel of oil trades below $40. Energy & Exploration Partners will rely on $135 million of financing from its senior lenders during its restructuring process to keep operations running.

Energy & Exploration Partners’ Texas asset is estimated to have 13 million barrels of oil in developed and 35 million barrels in undeveloped oil-prone unconventional reserves.

Many other US exploration and production companies are also filing for bankruptcy protection in 2015, including Sabine Oil & Gas, Samson Resources, Escalera Resources, Quicksilver Resources and Milagro Oil & Gas. These companies cumulatively had more than $13 billion in secured and unsecured debt.