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November 21, 2018 – PetroQuest Energy filed a motion requesting authority to sell certain casing assets to Barrett Steel Energy Products [Docket No. 151]. The motion states that (i) the price to be paid represents the highest and best offer in light of limited demand for this type of casing and that (ii) absent a sale, the casing would be a drain on the estates’ value as the Debtors continue to incur storage and maintenance fees as well as ad valorem taxes in respect of this unused asset.
The motion states, “Selling casing is in the ordinary course of the Debtors’ business and the Debtors and similar companies in the industry often sell casing when it is no longer needed….The Debtors purchased the Casing for a well that was cancelled and therefore the Debtors no longer have a use for the Casing. Since the price represents the highest and best that the Debtors believe they will receive and the Debtors no longer have a use for the Casing, the Debtors decision to sell the Casing for $51 per foot is an exercise of the Debtors’ sound business judgment.”
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