Independent oil and gas exploration and production company Teton Energy Corp. said it plans to sell its assets to Rise Energy Partners II LLC for $18.7 million through an auction supervised by a U.S. bankruptcy court, according to Reuters.
In a Chapter 11 petition filed on Nov. 8, Teton listed assets of $24.2 million and debt of $44.3 million.
The company says its operations are concentrated in the Rocky Mountain and Midcontinent regions, with interests in the eastern Denver-Julesburg Basin in Nebraska, the Big Horn Basin in Wyoming and its newest property in the Central Kansas Uplift.
Under the proposed plan, Rise Energy Partners will give $11.7 million in cash while $7 million will be contributed in the form of a loan. The money will be used to pay off Teton’s creditors.
The case is In re: Teton Energy Corp, U.S. Bankruptcy Court District of Delaware (Delaware), No. 09-13946.