I recently received a letter requesting some corrections to the post on Allegheny Natural Resources I wrote last month. I stated that Allegheny was the subject of an involuntary Chapter 7 filing; in fact, it was a Chapter 11 petition. That case has proceeded to a settlement agreement between Allegheny and the original petitioners, and a hearing was scheduled. However, another creditor has filed its own Involuntary Chapter 7 petition and an objection to the settlement. The new creditor did not list the amount of claims in its petition. As Allegheny had to secure financing to satisfy the creditors, the new petitioner's move appears wise.
In the meantime, it appears that Allegheny's well permits have been held up due to unresolved issues regarding the plugging of some abandoned wells. So Allegheny still has not drilled any wells for the 2010 program, is not likely to get any production this year, and certainly will not issue any revenue checks to 2010 investors.
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