A US oil and gas firm has mounted action against two energy companies over an alleged breach of obligation.
Target Energy Limited’s subsidiary TELA Garwood LP has filed a lawsuit in Harris County District Court, in Houston, Texas, against Victory Energy Corporation and Aurora Energy Partners.
The law suit charge alleges that Aurora, acting through partner, Victory, breached an obligation to purchase some of TELA Garwood’s interests in the West Texas Fairway Project.
The suit relates to a Purchase and Sale Agreement (PSA) between TELA Garwood and Aurora dated June 30, 2014.
Aurora and TELA Garwood completed a first closing on June 30, 2014, but failed to complete a second closing in line for July 31, 2014, as a result of Aurora’s breaches of its obligations under the agreement.
Laurence Roe, managing director of Target, said: “We commenced this action after negotiations intended to cause Aurora to comply with its purchase obligations under the PSA were unsuccessful.
“These negotiations followed Aurora’s failure to meet its second closing payment obligations in September 2014. We plan to hold Victory and Aurora accountable for the resulting damages suffered by TELA Garwood.”