Shares of Denver-based Triangle Petroleum Corp. continued to fall hard after its operating subsidiary Triangle USA Petroleum Corp. filed for bankruptcy protection earlier in the week.
Triangle Petroleum Corp. itself wasn’t included in the filing. But its shares have lost a third of their value the past two days, including a 12 percent hit on Friday. Triangle Petroleum shares, which traded around $12 a share two summers ago, ended trading Friday at 25 cents.
Triangle USA Petroleum focuses primarily on the Williston Basin in North Dakota and Montana, where less developed infrastructure and higher production costs have made drilling more challenging than in other big plays.
Bloomberg reports that Triangle USA had $689 million in long-term debt, split between a $308 million revolving credit line and $381 million in senior unsecured notes carrying a 6.75 percent interest rate. The notes will be converted into equity, while talks are underway with bankers on the credit facility.
Triangle USA joins a growing list of Denver-based oil and gas producers who have sought relief in bankruptcy protection. They include , Venoco, Craig Energy, Escalera Resources and American Eagle.
