Furie Operating Alaska has filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Delaware, and plans to sell its oil and gas exploration and production operations.
That leaves Hilcorp as the only gas producer in Cook Inlet, putting it in an even stronger position to call the shots on price.
Furie, along with its parent company, Cornucopia Oil and & Gas Company, and its affiliate, Corsair Oil & Gas LLC, filed the bankruptcy papers, reporting up to 49 creditors, assets of $1 million to $50 million, and liabilities of $100 million to $500 million.
Furie has failed this year to meet its contracted agreement to supply gas to Enstar Natural Gas Company.
The Texas company operated the offshore Kitchen Lights natural gas field in Cook Inlet and has a contract to supply Homer Electric Association. But several things went wrong, from late arrival of rigs to technical problems.
Signs have pointed to financial distress as Furie stopped supplying gas to Enstar earlier this year and Homer Electric has been buying its gas on short term contracts.
The Wall Street Journal reported that the company was “struggling with uncertainties over a state tax-credit program.”