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Paradox Resources Files for Chapter 11 Bankruptcy

Texas-based, Paradox Resources LLC, has filed for Chapter 11 bankruptcy protection listing at least US$50mm in debt. Paradox’s Lisbon Valley gas plant in Utah has gas processing capacity of 60mmcf/d and helium treatment capacity of 1.1mmcf/d as well as helium liquefaction capability of 0.6mmcf/d, which is currently offline. Paradox owns over 100,000 net acres and operates over 150 wells in the Paradox Basin. The company cites operational issues at its gas processing plant and financial challenges exacerbated by the COVID-19 pandemic and declining natural gas prices as reasons for its insolvency. Paradox aims to stabilise its cash flow, obtain regulatory approvals, and secure contractual agreements during the bankruptcy proceedings. Grand Gulf Energy entered into a strategic alliance with Paradox. Avanti has signed a tolling agreement with Paradox for the liquefaction of 150mcf/d of helium at the Lisbon Valley gas plant. NASCO is selling production from the Boundary Butte field to the Lisbon gas plant. The plant is also in the process of permitting for carbon capture tax credits under Section 45Q of the US tax code.

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