Due to the downturn in oil prices the Company is reportedly having issues paying down its debt. Without loan guarantees from the tribal council, NNOGC has been left to try to refinance existing loans, consider selling some the company’s assets or explore filing Chapter 11 bankruptcy protection. Spokesperson:
We are considering all avenues to pay down our bank debt while maintaining the company’s assets. NNOGC remains the Navajo Nation’s most valuable asset and also a very important strategic asset. The valuation of oil and gas properties and pipelines goes up and down with oil prices. We estimate our assets to be worth $100 million to $200 million in the current market and for those values to again rise as oil prices increase…We have plans to drill in the near future but remain focused on repaying outstanding debt at the moment.