We represented ERG Resources, Inc. in litigation against Nabors Global Holdings II, Ltd. and Parex Resources, Inc. involving the acquisition of oil and gas properties in the Republic of Colombia. In early 2012, ERG agreed to purchase the stock of Ramshorn International from Nabors for $45 million, which would give ERG ownership of Ramshorn’s valuable Colombian oil and gas interests. During the due diligence period, ERG identified certain alleged breaches of Nabors’ representations and warranties under the purchase agreement. At the same time, Parex offered Nabors a substantially higher price for the same assets. ERG alleged that Parex had knowledge of the purchase agreement and that Nabors sought to thwart the deal in order to sell the assets to Parex instead of ERG. Nabors subsequently sold the assets to Parex for $75 million. ERG filed suit against Nabors and Ramshorn seeking specific performance and, in the alternative, damages for breach of contract. ERG also asserted claims against Parex and its subsidiary for tortious interference with ERG’s contract. After a two-day special appearance hearing, the trial court denied Parex’s and Ramshorn’s special appearances, but granted the special appearance of the Parex subsidiary.
The jurisdictional rulings were appealed to the Texas Supreme Court, which determined that personal jurisdiction existed over Ramshorn but not over Parex or its subsidiary. As a result, ERG was required to pursue parallel litigation against Parex in Alberta, Canada.
In 2017, ERG’s claims against all parties were resolved prior to trial in a series of settlements totaling $35 million.