May 11 (Reuters) - Oklahoma oil and gas producer Chaparral Energy Inc on Monday warned of its ability to continue as a going concern amid a historic plunge in commodity prices and said it has hired legal and financial advisors.
Reuters reported in March that the company was working with debt restructuring advisers as it looks to shore up its cash position.
A fall in economic activity due to the COVID-19 pandemic and a price war between top oil producers Russia and Saudi Arabia has hurt oil prices, with U.S. crude falling about 60% this year and dropping below $0 for the first time in history last month.
Oklahoma City-based Chaparral had around $421 million of debt outstanding at the end of 2019. It had about $22.6 million in cash and cash equivalents and $130 million drawn under its $325 million borrowing base, with no significant debt maturities due until 2022.
The company said bit.ly/3fIfMLV on Monday it has begun to shut-in non-essential oil production and posted a first-quarter profit of $4.91 million compared with a loss of $103.5 million a year earlier. (Reporting by Arathy S Nair and Arunima Kumar in Bengaluru; Editing by Arun Koyyur)