SAN ANTONIO, TX – November 12, 2018 – All American Oil & Gas Incorporated (“All American”) announced today that, due to an ongoing dispute with its secured lenders, All American and its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (“Bankruptcy Code”) in the United States Bankruptcy Court for the Western District of Texas
(“Bankruptcy Court”). During the bankruptcy process, All American and its subsidiaries will continue to operate in the normal course of business under the oversight of the Bankruptcy Court. All American projects that it will have adequate cash flow from operations to fund its continued operations during the bankruptcy process. For more information about the bankruptcy cases please
visit www.bmcgroup.com/AAOG and on the secure investor portal.
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About All American Oil & Gas Incorporated
All American Oil & Gas Incorporated, through its subsidiary Kern River Holdings Inc., is the largest private oil and gas producer in the Kern River Oil Field. Founded in 2004, All American has grown production to over 2,000 barrels of oil a day at its peak through their low cost enhanced oil recovery steam flood program. All American, through its subsidiary Western Power & Steam, Inc., also
operates a 20-megawatt cogeneration facility located adjacent to Kern River Holdings Inc.
Additional information on All American is available at www.aaoginc.com.
HOUSTON — Kern River Holdings Inc., a wholly-owned subsidiary of San Antoniobased All American Oil and Gas Inc., has filed a breach of contract claim against Shell Trading (US) Co., a Houston-based affiliate of Royal Dutch Shell.
The lawsuit, filed in Harris County District Court, alleges that Shell Trading failed to take delivery of crude oil shipments and improperly sought to deny responsibility for service interruptions when the company-owned San Pablo Bay Pipeline suffered a rupture in May of 2016 that spilled more than 20,000 gallons of oil near Tracy, California.
As a result of the rupture, Kern River was forced to store curtailed production from its Bakersfield facility for almost 60 days while the pipeline was down. According to the lawsuit, Shell Trading was obligated by contract to take delivery of crude oil production by truck, and failed to take reasonable steps to mitigate any losses by Kern River due to service interruptions.
The breach of contract claim represents Kern River’s lost revenues, expenses for the storage tanks, and damage resulting from decreased production once service was restored.
Kern River has previously negotiated a business interruption insurance claim
concerning the event with its insurance carrier AIG, which was paid in full. Kern River’s total damage claim against Shell Trading is for $3,306, 348, subject to AIG’s subrogation amount for its insurance payment.
Dave Katz, Esq.
Kern River Holdings
Click on the following link to reach the press release from GE announcing GE Energy Financial Services arrangement of a senior secured revolving credit facility for All American Oil & Gas, Inc. View Press Release