Barrow Shaver Resources Company, LLC is in the post-sale phase of a Chapter 11 liquidation in the Southern District of Texas (Judge Alfredo R. Perez), with substantially all operating assets sold to TexOil Investments, LLC in November 2025 and a Chapter 11 Plan of Liquidation pending confirmation while the estate litigates competing mineral-interest claims.
The case began as an involuntary Chapter 7 filing on July 23, 2024, when six oilfield-service trade creditors pushed the East Texas independent E&P into bankruptcy over roughly $8.45 million in unpaid drilling, completion, and production invoices. Liquidity pressure intensified when Force Pressure Control and Axis Energy Services served mineral liens under Texas Property Code Chapter 56, prompting Plains Marketing, L.P. to withhold production revenue through an interpleader complaintDkt. 1. The debtor consented to relief and converted to Chapter 11 on August 19, 2024, installing CR3 Partners' James Katchadurian as Chief Restructuring Officer Declaration of James A. KatchadurianDkt. 63 and obtaining first-day relief on wages, schedules, and an agreed stay-relief framework governing mineral interests Agreed Order on Motion for Relief From Automatic StayDkt. 45.
The restructuring turned on two intertwined problems: the debtor's working-capital collapse and pervasive title uncertainty over Working Interests and Overriding Royalty Interests (ORRIs) across the Hidden Rock Field. Those title disputes migrated into adversary proceedings. An Ad-Hoc Group of working-interest investors sought declaratory relief to exclude unrecorded interests from the estate under section 541(d) , Cactus Wellhead and Princess Three Operating pursued lien foreclosure and statutory-trust declarations against non-debtor working-interest owners , and former consultants Raymond Kasino and LaWanda Turner contested the enforceability of ORRIs granted under 2019 Consulting Agreements , a dispute the parties continue to brief on statute-of-fraud grounds following the Court's May 2026 Memorandum Opinion .
With operations stabilized and litigation exposure mounting, the debtor ran a section 363 sale process culminating in the November 19, 2025 sale of substantially all assets to TexOil. Sale proceeds anchor the February 19, 2026 Plan of Liquidation, which transfers residual estate assets and causes of action—including the "NETX Litigation" and potential avoidance actions—to a Liquidation Trust funded by Lot 1 ($27.52 million), Lot 2 ($16.24 million to $32.48 million), and Lot 3 proceeds Chapter 11 Plan of ReorganizationDkt. 1087. The plan establishes nine claim classes, with secured, mineral-interest, general unsecured, and litigation claims receiving series trust interests and equity interests extinguished.
The debtor continues to resolve contingent liabilities in parallel with plan progress. On June 9, 2026, the Court approved a Rule 9019 settlement with SDS Petroleum Consultants LLC and S One Royalty Properties, LLC Order Granting 9019 SettlementDkt. 1281, and retained professionals—including CR3 Partners and special insurance counsel Blank Rome—continue fee applications through the wind-down. A status conference is set for June 24, 2026, and a claims-objection hearing for July 15, 2026.
