Chesapeake Energy Corp. recently lost its appeal to reverse a $19.7 million judgment awarded to Peak Energy Corp. The decision came out of the Eastern District of Texas and was upheld by the U.S. Court of Appeals - 5th Circuit in New Orleans. It stems from an agreement made in July 2008 to purchase deep rights held by Peak in leases out in the Haynesville Shale area. The purchase price was set at $15,000 per acre. When gas prices took a dive, though, Chesapeake refused to honor the agreement.
Chesapeake argued the agreement was unenforceable under the Texas Statute of Frauds, fatally indefinite and that Peak had failed to tender performance. The Court disagreed.
Check out the opinion Here.
Chesapeake argued the agreement was unenforceable under the Texas Statute of Frauds, fatally indefinite and that Peak had failed to tender performance. The Court disagreed.
Check out the opinion Here.
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