NEW YORK – The oil and gas industry in Wyoming continued to get bad news as Ultra Petroleum Corp. filed for bankruptcy.
In court papers filed in Houston on Friday, Ultra reported $1.3 billion in assets but a $3.9 billion debt. The company is based in Houston and has 159 employees. Documents said its main assets are gas-producing properties in Wyoming. They also have assets in Pennsylvania and crude oil properties in Utah.
Ultra asked the court for permission to continue a surety bonding program. The program has $12.6 million outstanding that secures its obligations on remediating well sites, repairing road damage and plugging wells.
Ultra’s Chief Financial Officer Garland Shaw told Bloomberg low commodity prices, especially the low natural gas prices, have had a devastating impact on the company to start 2016.
This comes on the heels of a recent announcement by another major oil and gas player Linn Energy. In March, the corporation said that bankruptcy may be unavoidable for the producer.
Linn reported they have hired financial and legal advisers to look at the different options, but added bankruptcy may be its only option.