Saratoga Resources seeks bankruptcy protection

HOUSTON – Saratoga Resources says it is seeking chapter 11 bankruptcy protection, the fifth U.S. oil producer this year to have to restructure its balance sheet in court proceedings.

The Houston oil company said late Thursday it has enough cash to run its businesses for now and will manage its properties, which are largely in Louisiana and the shallow waters of the Gulf of Mexico, as debtors in possession.

The chapter 11 petition in a Louisiana federal bankruptcy court comes, it said, after operational problems at its oil field operations and the 12-month oil slump. The U.S. oil benchmark was at its most recent peak of $107.26 a barrel a year ago from this Saturday. It was traded for $59.55 early Friday.

Saratoga said it has worked to fix reduced production run times at its oil field, and has addressed mechanical issues, flow line capacity constraints and other problems. It cut costs by $13 million and worked with lenders to “try to address liquidity issues with a view to either restructure or repay existing debt,” said Thomas Cooke, Saratoga’s chairman and CEO.

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