HOUSTON, May 19 (UPI) -- A Texas oil company working in the state shale basins, as well as those in North Dakota, said it was working to eliminate its debt through a restructuring plan.
Halcon Resources Corp., which has headquarters in Texas, announced it settled on the terms to restructure its balance sheet through bankruptcy.
"The restructuring plan, if implemented, will result in the elimination of approximately $1.8 billion of debt," the company said in a statement.
Energy companies continue to face pressures from lower crude oil prices despite this year's market recovery. Crude oil prices are about 17 percent below the level this time last year.
A survey from the Dallas Federal Reserve found unemployment rates are increasing for the workforce associated with the state oil and gas industry. In North Dakota, the governor has called for a review of the state budget as the weak market takes its toll.
Halcon said it produced around 8,300 barrels of oil equivalent per day from the Eagle Ford shale reserve area in Texas and, as recently as May 9, said it planned to drill more once oil prices improve. In the Bakken area of North Dakota, the company averaged 28,606 barrels of oil equivalent per day during the first quarter.
The company reported total revenues for the first quarter of $81.3 million, a 30 percent decline from the previous quarter.
The company said a majority of the shareholders expressed support for restructuring.
