History
Chancellor Group went through Chapter 11 in 2007-2008, sold most of its oil and gas business, tried gold, then moved into technology and sold its last wells in 2014.
2007-2008: Bankruptcy and the Legacy sale
Chancellor Group was a small Texas Panhandle oil and gas operator. In late October 2007 it and its two operating subsidiaries, Gryphon Production and Gryphon Field Services, filed for Chapter 11 bankruptcy protection in the Northern District of Texas. The aim was to reorganize, keep operating and repay creditors in full.
It took a different route. In August 2008 Chancellor agreed to sell about 80% of its oil and gas production to Legacy Reserves for $13.25 million, and the court dismissed the Chapter 11 cases so the sale could close. This was over the objection of shareholder New Concept Energy. The sale closed on 5 September 2008. It paid off secured lenders Western National Bank and Capwest Resources in full and funded a $110,000 buyback of New Concept Energy's stock as part of a litigation settlement. Chancellor emerged debt-free, with about $3 million in working capital and roughly 30% of its original acreage.
2010-2011: Gold detour and further wind-down
The record is quiet for 2009. In December 2010 Chancellor agreed to fund a Zimbabwe gold exploration venture with local partner Munda We Gold, paying $50,000 a month during a 90-day diligence period. In March 2011 the board terminated the agreement, citing governance concerns and regional political instability, less than four months later.
Chancellor then kept shrinking its oil and gas business. In October 2011 it agreed to sell substantially all of Gryphon's remaining oil and gas assets to LCB Resources for $2.05 million, keeping four producing wells. The sale closed in December 2011 for $2.05 million in cash and covered about 82% of its remaining consolidated assets.
2013-2015: Technology and the final exit
In January 2013 Chancellor agreed to fund Pimovi, Inc., a technology startup it would own 61%, with $250,000 over eight months in exchange for preferred equity and board control. In August 2013 it agreed to buy 51% of Fuelist, LLC, a California startup, for $271,200 paid over 12 months plus 2 million Chancellor shares. Shares on issue rose from 69,560,030 at the end of 2012 to 73,760,030 at the end of 2013, and to 74,460,030 at the end of 2014. The beats explain only the 2 million shares promised for Fuelist.
On 25 July 2014 Chancellor sold its last oil and gas assets, four wells and a water disposal well in Gray County, Texas, to S&W Oil & Gas for $95,000. That ended its oil and gas business, leaving it focused on its Pimovi and Fuelist investments. In May 2015 it deregistered its securities, ending its obligation to file reports with the SEC.
Written from the 11 story beats below (2007 to 12 May 2015), which come from the company's own announcements and filings.