Low oil and natural gas prices forced Houston-based Saratoga Resources Inc. to ask the federal bankruptcy court in Lafayette for protection from creditors while the company reorganizes.
The company plans to continue operating its business and believes it has enough cash to do so without financing.
Saratoga also has offices in Covington. The company has 51,500 acres under lease along the coast of Louisiana and in the shallow waters of the Gulf of Mexico.
Saratoga said the company has undertaken “exhaustive initiatives” to reduce its operating costs. Saratoga also has gotten more time from its lenders to pay them back while the energy company restructures its debt.
Filing for Chapter 11 reorganization will also prevent Harvest Operating from collecting a $3.7 million arbitration award, according to Saratoga Chairman and Chief Executive Officer Thomas F. Cooke. Saratoga is discussing the issue with Harvest, pursuing separate legal claims against Harvest, which may ultimately offset some or all of the award.
Saratoga lost $143.9 million, or $4.65 per share, in 2014. A year earlier, the company lost $26.4 million, or 85 cents per share.
The company’s shares have fallen from more than $2 a share in June to 18 cents or so Friday.