Rooster Energy Ltd.
TSX VENTURE : COQ

Rooster Energy Ltd.

June 02, 2017 19:30 ET

Rooster Energy Ltd. Announces Filing Voluntary Chapter 11 Reorganization Proceedings and CCAA Filings

CALGARY, ALBERTA--(Marketwired - June 2, 2017) - ROOSTER ENERGY LTD. (www.roosterenergyltd.com) (TSX VENTURE:COQ) announced today that all of its U.S. subsidiaries, Rooster Energy, L.L.C., Rooster Petroleum, LLC, Rooster Oil & Gas, LLC, Probe Resources US Ltd., Cochon Properties, LLC and Morrison Well Services, LLC (together, the "Company") each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (the "Code"). The Company has requested that all cases be consolidated only for administrative purposes. Motions have also been filed for entry of interim and final orders: (i) authorizing post-petition use of cash collateral; (ii) granting adequate protection to pre-petition secured parties; (iii) modifying the automatic stay imposed by section 362 of the Code; (iv) scheduling a final hearing; and (v) granting related relief. The Company anticipates that it will file for recognition of any orders entered under Chapter 11 of the Code under the Companies' Creditors Arrangement Act ("CCAA").

The commencement of Chapter 11 reorganization proceedings follows previously disclosed discussions between the Company and the holders of its Senior Secured Notes to restructure the terms and conditions of the related Note Purchase Agreement. The Company and the holders of the Senior Secured Notes have been unable to reach agreement on these matters. The Company has been left without access to sufficient cash collateral, limiting the long-term ability of the Company to operate its businesses. It is the intention of the Company to continue to operate during the proceedings.

ABOUT ROOSTER ENERGY LTD.

Rooster Energy Ltd. is a Houston, Texas, based independent oil and natural gas exploration and production company focused on the development of resources in the shallow waters of the Gulf of Mexico and the delivery of well intervention services, including well plugging and abandonment.

Investors are welcome to contact the following for all corporate updates and investor inquiries:

Kenneth F. Tamplain, Jr.
Chief Executive Officer
Rooster Energy Ltd.
16285 Park Ten Place, Suite 120
Houston, Texas, USA 77084
Telephone: (832) 772-6313

Forward-Looking Information and Statements

Certain statements and information in this press release may constitute "forward-looking information" or statements as such terms are used in applicable Canadian securities laws. Any statement that expresses, involves or includes expectations of the Chapter 11 and CCAA filings, continued operations, ability to meet obligations to employees and suppliers, projections, objectives, assumptions or future events that are not statements of historical fact should be viewed as "forward-looking statements". Forward-looking information is based on opinions, expectations and estimates of the Company as at the date such statements are made and are subject to a variety of known and unknown risks and uncertainties. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. These risks include, but are not limited to, the decisions of the courts' in the United States and Canada, the uncertainties of the Chapter 11 and the CCAA processes, the financial condition of the Company, retention of key personnel, continued operations of the Company and general economic conditions. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated with the uncertainty of reserve estimates, or reservoir performance, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on any forward-looking statement in this press release. The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.

Contact Information

  • Rooster Energy Ltd.
    Kenneth F. Tamplain, Jr.
    Chief Executive Officer
    (832) 772-6313