Newspaper article THE JOURNAL RECORD

Riggan Plans Strategy to Lead Penn Pacific out of Bankruptcy

Newspaper article THE JOURNAL RECORD

Riggan Plans Strategy to Lead Penn Pacific out of Bankruptcy

Article excerpt

As the new president of a company that has pulled itself out of Chapter 11 bankruptcy, Oklahoma City's Ronald T. Riggan has his hands full.

Penn Pacific Corp., an oil and gas firm with headquarters in Santa Ana, Calif., and an operations office in Oklahoma City, was informed Dec. 5 that its reorganization plan had been approved by the Bankruptcy Court for the Central District of California at Santa Ana.

Riggan's goals for Penn Pacific are to carry the company through the bankruptcy, get a firm handle on the current properties and try to enhance them and enter 1987 with new acquisition funds.

Penn Pacific will buy properties now because Riggan expects improvements in the natural gas market this year.

"It's the absolute perfect time to buy properties," Riggan said. "I think we've seen the proverbial bottom of the barrel, price-wise.

"Since the company has no debt and nominal overhead, it has the opportunity to acquire other properties to supplement it's cash flow," Riggan said.

"People went on a rash of buying, then the price collapsed. It lowered our risk in acquisitions because the price declined so rapidly after the first of this year and appears to have stabilized.

"Now we can review acquisitions with a very realistic price in the gas market," Riggan said. "In today's environment, we have a much better economic upside."

The company will concentrate its search in the mid-continent region, Riggan said, because this is an area where he has had 10 years' experience.

Riggan is a certified professional landman. He started his career 20 years ago with Texaco, and since then has worked for the majors and large independent oil companies.

In 1980, Riggan joined Alexander Energy Corp. of Oklahoma City. He served as a director of the Oklahoma City-based company until resigning the post in April to pursue other opportunities.

Penn Pacific's current operations will totally support its overhead, he said. The company has 41 producing wells, most of them natural gas. …

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