Emerald Oil Inc. and its subsidiaries (collectively referred to as the debtors) filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code on March 22 in the District of Delaware, pursuant to which the debtors plan to sell substantially all of their assets in a possible auction in July.
The assets consist of approximately 76,000 net acres in the Williston Basin in North Dakota. The debtors operated 100% of this total net acreage in the Low Rider and Lewis & Clark areas of McKenzie County, along with the Pronghorn Sand formation in Stark and Billings counties. As of Dec. 31, 2015, the debtors estimated the value of the assets at $291 million.
The debtors intend to conduct an auction process to maximize the value of the assets.