Stone Energy, an independent oil and natural gas exploration and production company (E&P) headquartered in Lafayette, Louisiana drills mainly in the Gulf of Mexico but also has (or rather had) a presence in the Marcellus/Utica Shale with 90,000 acres of leases. In October Stone announced (a) it is selling its Marcellus/Utica assets to Tug Hill for $350 million, and (b) the company is preparing to file for bankruptcy (see Stone Energy Enters Bankruptcy, Sells Marc/Utica Assets for $350M). Stone needs the bankruptcy court’s permission to sell the acreage. However, Stone’s bankruptcy plans are facing a challenge from it’s biggest shareholder. Investor Thomas Satterfield, who now owns 9.9% of the company’s stock, doesn’t want to see that stock turned into toilet paper by handing the keys over to debtholders, as is the typical route E&Ps have taken with bankruptcy filings over the past year or so (see Stone Energy’s Largest Shareholder Opposes Current Bankruptcy Plan). Last week the company announced it is pushing ahead with its plan to file for bankruptcy including seeking permission to sell its Marcellus/Utica assets, over the objections of Satterfield who said he would see them in court (see Stone Energy Files for Bankruptcy, Largest Shareholder Opposes). It’s been a fast and furious week. Satterfield has struck a bargain with Stone, figuring half a loaf is better than no bread at all…
