Oasis Petroleum files for Chapter 11 bankruptcy protection

FILE PHOTO: A drilling rig on a lease owned by Oasis Petroleum performs logging operations in the Permian Basin near Wink, Texas U.S. August 22, 2018. REUTERS/Nick Oxford

(Reuters) – Oasis Petroleum Inc OAS.O filed for Chapter 11 bankruptcy protection on Wednesday, becoming the latest shale producer to seek a court-aided restructuring after a coronavirus-led slump in oil prices dried up available capital in the industry.

Lockdowns to stem the spread of COVID-19 decimated travel and the demand for fuel, bringing oil drilling to a halt and leaving many shale producers with no source of cash to repay massive debt taken on in past years.

“Due to historically low global energy demand and commodity prices, we determined it is best for Oasis Petroleum to take decisive action to strengthen our liquidity and overcome the headwinds now challenging both our company and industry,” Chief Executive Officer Thomas Nusz said in a statement.

Oasis said it secured $450 million in debtor-in-possession financing.

It listed assets and liabilities in the range of $1 billion to $10 billion, according to a court filing.

The company said its upstream operations and production are expected to continue as normal throughout the restructuring process.

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