Lexin Resources, target of largest ever suspension by AER, will have its assets sold off
Lexin Resources — a natural gas and crude oil producer that was the target of the largest suspension order ever by Alberta's Energy Regulator — has been put into receivership.
All of the Calgary-based Lexin's assets will be marketed and sold off under the management of Grant Thornton LLP.
Those assets include over 1,380 well sites, 201 pipeline licences and 81 facilities — all of which were turned over to the Orphan Well Association to be suspended and locked up after AER shut down Lexin's operations in February.
- MORE OIL NEWS | Enbridge sheds 1,000 jobs after takeover of Spectra Energy
"The receiver will not take possession of the assets," according to an AER news release.
"Care and custody of Lexin's assets remain with the Orphan Well Association and identified working interest participants."
When the AER shut down Lexin, it said the company failed to:
- Comply with orders made by the regulator to address hydrocarbon spills at its sour gas facility in southern Alberta.
- Close and abandon wells.
- Pay its administration fees or its security deposit for well reclamation.
The company was also unable to provide the regulator with proper health and safety overview and measures for its sour wells after Feb. 15.
- MORE ALBERTA NEWS | Going once, going twice: Uncertainty high ahead of Calgary Stampede chuckwagon auction
- MORE ALBERTA NEWS | Passenger's odd behaviour forces Greyhound to pull over east of Calgary
