Milagro Oil & Gas has filed for Chapter 11 bankruptcy protection, according to multiple news outlets. The company has approximately 1,200 wells in South Texas, along the Gulf Coast, and in Louisiana.
Court documents show that the Houston-based company had $1–10 million in assets and $500 million–$1 billion in liabilities. Milagro’s business became unprofitable as a result of the falling crude prices.
News sources have noted that Milagro plans to sell its oil and gas assets to Houston-based White Oak Resources VI LLC for $120 million in cash and $97 million in equity in White Oak.