Connacher Oil and Gas Ltd. said it intends to file for creditor protection, becoming the latest casualty of the energy bust.
Calgary-based Connacher said on Monday that it would file for protection under the Companies' Creditors Arrangement Act. The company cited weak oil prices and limited access to capital markets for the move.
Connacher had been in negotiations with debt holders after it skipped a March interest payment associated with $153.8-million (U.S.) in loans. It said Monday that it had received commitments from existing lenders for up to $20-million to finance continued operations.
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It said it will also seek approval to initiate a sales process for its assets or the company. Connacher operates the Great Divide steam-driven oil sands project, which pumped an average 5,900 barrels per day in the first quarter.