Parallel Energy files for bankruptcy, seeks sale to Scout Energy

Mon Nov 9, 2015 11:34am EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

WILMINGTON, Del Nov 9 (Reuters) - Oil-and-gas company Parallel Energy LP filed for U.S. Chapter 11 Bankruptcy on Monday due to low oil prices and said it had agreed to sell its assets to Scout Energy Group II LP for $110 million, according to court documents.

Parallel has 400 active oil and gas wells, mostly in Texas. The company is an affiliate of Parallel Energy Trust of Calgary which filed for protection from creditors in Canada, according to documents filed in the U.S. Bankruptcy Court in Wilmington, Delaware.

Parallel joins Samson Resources, Sabine Oil & Gas Corp and Hercules Offshore Inc, among others, that have been forced into bankruptcy due to an 18-month slump in commodity prices.

Parallel Energy LP estimated it had assets and liabilities of between $100 million and $500 million.

Scout Energy is a Dallas-based private investment firm that acquires oil-and-gas assets, according to its website.

Scout Energy's bid for Parallel Energy will be subject to higher bids at a court supervised auction, which Parallel has proposed holding on Jan. 6, according to court documents.

The case is Parallel Energy LP, U.S. Bankruptcy Court, District of Delaware, No. 15-12263 (Reporting by Tom Hals in Wilmington, Delaware; Editing by Andrea Ricci)