Cougar Oil and Gas Canada Inc (fka COUGF)

[downsideup]

Thanks.

Had a look through the documents, and it boils down to this:

"Subsequent to the Initial Filing Date, Cougar Oil and Gas encountered multiple setbacks which prevented Cougar from being able to continue operating under the CCAA. These setbacks are described in two material adverse change reports prepared by the Monitor, the second report of the Monitor dated April 12, 2012 and the fifth report of the Monitor dated May 10, 2012"

Looking at those adverse material change reports, they consist of two events... which are primarily useful mostly if not only as an object lesson in how badly bureaucracy can screw things up...

The first material adverse event was a direct result of the financial difficulties that the company was in, which result had the Canadian regulators force them to shut down their production in 8 wells pending posting of a larger bond. They eventually posted the required $700,000 bond to resume production, but, when they "turned the wells back on" only half of them proved able to produce. Oil wells are not light switches... you can't just turn them off and back on. So, the shut in destroyed the productive capacity of 4 of 8 wells... perhaps permanently...

The second material adverse event, obviously derivative of the first, was that the lenders cut off their DIP financing because the expected cash flow from producing wells didn't materialize.

Bottom line:

1. They're no longer "operating under court protection" but are now bankrupt and being liquidated.

2. The receiver (rather magically, in my opinion) estimates that the probable value at sale of the COUGE properties happens to exactly match the secured and unsecured creditor obligations.

3. Stick a fork in it.