The drastic fall in the price of crude oil has now claimed it’s first victim. The company is Red Fork Energy and is listed in Australia but is completely exposed to the US shale gas industry. According to ABC News, the company’s lender refused to continue to provide financial support amidst the oil crash and soon called in receivers.
Even though this occurred in Australia, it is bound to send shivers down the spine of most Shale producers in the US. It is believed that most Shale Companies cannot break even at current prices ($60-$63) which incidentally is why OPEC has refused to cut production.
I understand trading on the company share price has been suspended. Is the Shale Bubble about to burst? Let’s see how many companies will go bankrupt.
Get the full story here Abc