Sandridge Energy Inc. warned Wednesday the prolonged downturn in energy prices could force it to seek bankruptcy protection as the oil and gas exploration company struggles to address its high debt load.

The Oklahoma City company has been working with financial advisors to explore its options and said in its annual report that could include "a restructuring, amendment or refinancing of existing debt through a private restructuring or reorganization under chapter 11 of the bankruptcy code."

Sandridge had previously said the report would contain a "going concern" warning from its auditor because of substantial doubt regarding its ability to continue operations, which violates the terms of its revolving credit facility.

The company is trying to negotiate a waiver from lenders during the next 30 days, but the violation could turn into an event of default, Sandridge said Wednesday.

Two weeks ago Sandridge made interest payments to bondholders totalling about $50 million rather than default on the debt after exhausting a 30-day grace period. The company opted to skip the payments in February in the hopes of buying time to negotiate a restructuring with the holders.

Sandridge is among a large group of oil and gas explorers to experience turmoil as a result of the decline in both oil and natural gas prices. Many, including Samson Resources Corp., Magnum Hunter Resources Corp., Emerald Oil Inc. and Swift Energy Co., have already sought bankruptcy and others have warned that they might.

Sandridge drills for oil and gas in Oklahoma, Kansas and Texas, where it has 4,411 gross producing wells and more than 2 million gross acres under lease. As of Dec. 31, it had four rigs drilling. At the end of last year, the company employed 1,165 people but has since reduced its headcount to 864.

For the quarter ended Dec. 31, Sandridge posted a net loss of $653.7 million, or $1.13 a share, compared with a profit of $265.2 million, or 48 cents a share, a year earlier. Revenue fell 59% to $143.6 million.

Josh Beckerman contributed to this article.

Write to Stephanie Gleason at stephanie.gleason@wsj.com

(END) Dow Jones Newswires

March 30, 2016 14:05 ET (18:05 GMT)

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