Erin Energy Corporation Announces Restructuring Filing
Business Wire Business Wire•April 25, 2018
HOUSTON--(BUSINESS WIRE)--
Erin Energy Corporation and certain of its subsidiaries (together "Erin Energy" or the "Company") (NYSE American:ERN) (ERN), today announced that they had filed voluntary petitions under Chapter 11 of the United States Code (the "Code") in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the "Court") to pursue a plan of reorganization (the "Reorganization Plan").
Erin Energy and its subsidiaries will continue to operate under the jurisdiction of the Court and in accordance with the applicable provisions of the Code and the orders of the Court. To assure ordinary operations, Erin Energy is seeking approval from the Bankruptcy Court for a variety of motions, including authority to maintain bank accounts and other customary relief. Erin is in the process of looking for a source of debtor in possession financing to provide it with the necessary working capital to continue its operations and move towards a successful Reorganization Plan.
Subject to the approval of the Court, the Company plans to file a Reorganization Plan with the Court in the near term with a goal to work expeditiously with all parties involved to put together a plan that will result in Erin Energy’s emergence from Chapter 11 as soon as practically possible.
Femi Ayoade, Erin Energy’s CEO commented, "We will work diligently with all parties involved to complete the restructuring as quickly as possible so as to restructure all of the Company’s debt obligations in order to achieve financial stability and reposition Erin Energy with a strengthened liquidity position to execute on our extensive asset development opportunities."
Mr. Ayoade added: "The Company recently successfully drilled a discovery well in the Miocene formation in its offshore Nigeria licenses on a structure that independent analysis estimates could hold over a billion barrels of reserves. In The Gambia, Erin Energy holds a 20% interest in blocks A2 & A5 containing potentially, according to its Operator, over 800 million barrels of reserves. A well will be drilled there in the 4th Quarter of this year and the Company is being carried and has no obligation to fund that well."
In Ghana, work is in progress to acquire a marine 3D seismic survey later this year. The newly acquired 3D data will be used for the appraisal well drilling and development planning.
Okin Adams LLP is acting as bankruptcy counsel to Erin Energy.
The information contained in this press release is for informational purposes only and does not constitute an offer to buy, nor a solicitation of an offer to sell, any securities of the Company, nor does it constitute a solicitation of consent from any persons with respect to the transactions contemplated hereby and thereby. While Erin Energy expects the restructuring will take place in accordance with the Reorganization Plan, the debtor in possession will make all efforts towards successful completion of this restructuring.
Erin Energy Corporation
Erin Energy Corporation is an independent oil and gas exploration and production company focused on energy resources in sub-Saharan Africa. Its asset portfolio consists of 5 licenses across 3 countries covering an area of 6,100 square kilometers (~1.5 million acres), including current production and other exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana and The Gambia. Erin Energy is headquartered in Houston, Texas, and is listed on the New York and Johannesburg Stock Exchanges under the ticker symbol ERN.
For more information about Erin Energy or to request a hard copy of the Company’s most recent complete audited financial statements free of charge, please call +1 713 797 2940 or visit
www.erinenergy.com.
Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, concerning activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect.