US-based oil and gas exploration and production company Rex Energy has filed for protection under Chapter 11 of the US bankruptcy code following a strategic review.
The company has also announced plans to initiate a sale process for its remaining assets.
The pure-play company has its core operations in the Appalachian basin in the US.
Through the divestment programme, Rex Energy intends to maximise the long-term value and prospects of the assets.
The voluntary bankruptcy filing will allow the company to facilitate the sale and address its debt obligations.
Rex Energy CEO Tom Stabley said: “Over the past seven months, Rex Energy has been in deep discussion with our lenders and advisers to evaluate every aspect of our business and take proactive steps to overcome the challenges our industry continues to face.
“We have undoubtedly made progress in addressing the realities of the global commodities market but require a more fulsome debt restructuring to overcome the immense pressures our business is facing.
“Ultimately, we decided that the best possible outcome was to put our remaining assets into the hands of owners with the financial strength necessary to position them for long-term growth and success.”
The company noted that its drilling and production programmes will continue to operate, and commitments to gathering and processing partners will be met.
In this regard, Rex Energy has secured $100m from its existing first lien lenders to maintain normal operations and meet ongoing financial commitments.
The company will evaluate all offers for the planned sale of assets, which is expected to be completed within the next four to five months.
In March, the company reached an agreement to sell some of its non-operated oil and gas interests in Westmoreland, Centre and Clearfield Counties, Pennsylvania, to XPR Resources.
