TriDimension Energy Files for Chapter 11 Bankruptcy Reorganization and Obtains Financing for Continued Operations

DALLAS, May 27 /PRNewswire/ -- TriDimension Energy, L.P. and seven of its affiliated companies (Axis E&P, LP, Axis Onshore, LP, Axis Marketing, LP, Ram Drilling, LP, TDE Property Holdings, LP, TDE Operating GP LLC, and TDE Subsidiary GP LLC) (collectively, the "Company") filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division, on May 21, 2010.  Although the Company is continuing its discussions with various parties regarding strategic alternatives, which may include a potential sale of all or substantially all of its assets or a sale of the Company, the Company determined that, based on the Company's current financial condition, it was in the best interests of the Company and all of its stakeholders for the Company to seek relief under Chapter 11 of the United States Bankruptcy Code.  

The Company also announced that it has reached an agreement for, and obtained Bankruptcy Court approval of, Debtor-In Possession financing on an interim basis ("DIP Financing").  The Company will use the DIP Financing, along with cash from its continued operations, to continue its operations and meet its working capital needs, including the payment of employees' wages and salaries and the continuation of medical and other employee benefit programs, in the ordinary course of business.  The Company also obtained approval of its first day motions filed with the Bankruptcy Court that will allow the Company to continue to conduct its business with minimal interruption.  The Company expects that it will continue to manage its properties and operate its business as a "debtor-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the United States Bankruptcy Code.

The Company will continue to explore strategic alternatives with the assistance of Stephens Inc., its investment bankers, and FTI Consulting, Inc., its financial advisors.  The Company's management and Board of Managers believe that the Chapter 11 proceedings will allow the Company to conduct a process that will facilitate the Company's efforts to maximize value for all its stakeholders.

The Company has retained Vinson & Elkins LLP as their lead bankruptcy counsel, Ottinger Hebert, L.L.C. as their special counsel, FTI Consulting, Inc. as their financial advisors, and Stephens Inc. as their investment bankers, and has applied for approval of such engagements under the applicable procedural rules of the Bankruptcy Court.  Such professionals will continue to assist the Company during its restructure process in accordance with their respective engagement agreements pending such approval.

For more information concerning the bankruptcy cases of TriDimension Energy, L.P. and its seven affiliates, please visit the Company's claims and noticing agent's web site at www.bmcgroup.com/restructuring/restructuring.aspx and select "TriDimension Energy LP" from the Bankruptcy Case Info Finder.

ABOUT TRIDIMENSION ENERGY

TriDimension Energy, L.P. and its operating subsidiaries, TDE Property Holdings, LP, Axis E&P, LP, Axis Onshore, LP, Axis Marketing, LP, and Ram Drilling, LP, are engaged in the acquisition, development, exploration, production, and sale of oil and natural gas in Louisiana and Mississippi.  The Company leases approximately 165,218 gross acres of oil and gas property, and have proven reserves of approximately 5.1 million barrels of oil based on fourth quarter 2009 data.  

FORWARD-LOOKING STATEMENT DISCLOSURE

This press release contains "forward-looking statements" within the meaning of the Federal securities laws and regulations. Forward-looking statements are estimates and predictions by management about the future outcome of events and conditions that could affect TriDimension's business, financial condition and results of operations. We use words such as, "will," "should," "could," "plans," "expects," "likely," "anticipates," "intends," "believes," "estimates," "may," and other words of similar expression to indicate forward-looking statements.

There is no assurance that the estimates and predictions contained in our forward-looking statements will occur or be achieved as predicted. Any number of factors could cause actual results to differ materially from those referred to in a forward-looking statement.  Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, but are not limited to: (i) the ability of the Company to obtain final Bankruptcy Court approval of financing to the Company as may be necessary to effect a reorganization and/or to attract third parties with an interest to acquire the Company's assets or the Company and to reach agreement with such third parties and, to the extent required, the Company's creditors with respect to any such transaction; (ii) the Company's ability to obtain court approval with respect to motions in the Chapter 11 proceeding sought by it from time to time; (iii) the ability of the Company to develop, prosecute, confirm and consummate a plan of reorganization with respect to the Chapter 11 case; (iv) the ability of the Company to obtain and  maintain normal terms with vendors and service providers; (v) the Company's ability to maintain contracts that are critical to its operations; (vi) the potential adverse impact of the Chapter 11 case on the Company's liquidity or results of operations; (vii) the ability of the Company to attract, motivate and/or retain key executives and employees; and (viii) the other risk factors. The Company undertakes no obligation to publicly update or revise any forward-looking statement.

SOURCE TriDimension Energy, L.P.