Pacific Energy Resources Files for Chapter 11

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Pacific Energy Resources said Monday it filed for Chapter 11 bankruptcy protection, saying the drop in crude oil prices had made it hard to pay its debt.

The Long Beach oil and gas development company said its revenue depends on the market price for the crude oil produced at its properties, as well as the level of production.

Pacific Energy, which has 100 employees and oil and gas assets in California and Alaska, said seven affiliated entities had also filed for bankruptcy protection, including Gotland Oil Inc., Petrocal Acquisition Corp. and San Pedro Bay Pipeline Co.

“Due to a variety of factors, including the drastic fall in the price of crude oil in the last calendar quarter of 2008, the stress on the debtor’s cash flow worsened,” the company said in documents filed with the U.S. Bankruptcy court for the District of Delaware.

The price of crude oil has shed more than 70 percent of its value since its record peak of $147 last July. Light, sweet crude for April delivery was selling at just $44 per barrel on the New York Mercantile Exchange last week.

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