Milagro Oil & Gas Seeks Bankruptcy Protection

Houston-based Milagro Oil & Gas joined more than half a dozen smaller-cap exploration and production (E&P) companies to succumb to precipitously low oil prices in a prolonged downturn Wednesday.

Court records show the company has assets estimated between $1 million and $10 million in assets and between $500 million and $1 billion in liabilities owed to up to 49 creditors. 

According to The Deal Pipeline, Milagro in January failed to make good on a missed interest payment on its second-lien notes after a 20-day grace period, which led investors to speculate the company could be heading toward bankruptcy.

Just two days ago, Sabine Oil & Gas filed for bankruptcy. In June, it had, too, deferred millions of dollars in interest payments.

In operation since 2007, when Milagro acquired Petrohawk’s Gulf Coast division, the company took on the drilling, workover and recompletion of those assets. Three years later, Milagro added North Texas and Oklahoma assets to its portfolio. All told, Milagro owns interest in about 1,200 wells, has 100 employees and operates roughly 80 percent of its net production.