Warren Resources: Potential Bankruptcy, No Drilling in 2016

Last week MDN told you of a troubling sign at Warren Resources–the company had missed a $7.5 million payment on notes (IOUs) and the clock is now ticking (see Warren Resources Misses $7.5M Debt Payment, 30-Day Clock Ticking). Yesterday Warren released information on 2015 reserve and production figures. As part of that update, they say this: “If Warren cannot come to a workable agreement regarding an out-of-court restructuring, it will have to seek protection from its creditors through a bankruptcy proceeding in order to preserve and maximize value for its stakeholders” (emphasis added). In other words, if the people they owe money to don’t back off, the only choice left is to declare bankruptcy. Warren also said yesterday they won’t spend a penny on drilling in 2016…

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