Firm unable to sell interests in Piceance Basin
Efforts by a financially struggling Denver energy company to sell oil and gas interests near Parachute for $10.3 million have fallen through, the company said.
Puckett Land Co. has backed out of its plans to buy Teton Energy Corp.’s Piceance Basin holdings, which are centered in the Garden Gulch area.
Teton does not do any drilling itself related to those holdings, but owns a 12.5 percent oil and gas interest in 6,314 acres and at least 87 producing wells.
Privately owned Puckett is involved in oil and gas development in North America, with its principal reserves and producing properties located in Garfield and Rio Blanco counties.
Teton, a publicly traded company with operations and lease holdings in several states, announced the planned sale to Puckett in April.
It later said Puckett terminated the agreement after the two companies couldn’t reach agreement on resolution of certain obligations of Teton in connection with the deal. Puckett said this week its deposit will be returned under terms of the sale agreement.
In early May, Teton announced a first-quarter net loss of $35.5 million.
Karl Arleth, its president and chief executive officer, resigned May 5. Since March, the company has eliminated half its staff and cut pay by 10 percent for those who remain.
In announcing its first-quarter results, the company said it might depend on the sale of some or all of its assets as part of a strategy to stay in business. It says it is now evaluating alternatives regarding its Piceance Basin interests.
Filings in May with the Securities and Exchange Commission showed Teton obtained amended loan terms in hopes of staving off default and bankruptcy.