PITTSBURGH – Abarta Oil & Gas Co. LLC, a Pittsburgh-based oil and gas drilling company, filed for Chapter 11 bankruptcy protection in the US bankruptcy court for the Western District of Pennsylvania late Sunday.
The company, also known as Abarta Energy, headquartered at 200 Alpha Drive in Pittsburgh, had liabilities of $ 25.4 million and assets of $ 4.2 million. In court records, Abarta Oil & Gas said it plans to sell its remaining oil and gas assets and wind up its business, which dates back to the late 1970s and included wells in Pennsylvania, West Virginia and Kentucky. It is seeking bankruptcy clearance for the sale of its stake in a 1,722 acre natural gas field and collection pipeline in Bradford County. The parent company is Abarta Inc., to which it owes $ 10 million.
By far the largest creditor is Dominion Field Services, a Pittsburgh-based pipeline company whose parent company is energy giant Dominion (NYSE: X). Abarta Oil & Gas owes Dominion $ 2.8 million in a settlement struck in 2016 when Abarta canceled a gas transportation contract in Pennsylvania. It also owes $ 170,000 to another pipeline company, BHE Eastern Gas Transmission, under an agreement that failed when Abarta Oil & Gas sold oil and gas assets in West Virginia.
In a filing on Monday, Abarata Oil & Gas said its troubles began in 2015 during an earlier stage of the decline in natural gas raw materials, which weighed on the company as well as what it identified in a filing as significant debt.
Read more in the Pittsburgh Business Times.