A recent Texas oil and gas lawsuit involves claims that relate to a well that turned out to be a dry hole. Fort Apache Energy, Inc. filed a suit in July in the Harris County District Court against Ventum Energy, LP, Old World Management, Inc., Ventum Management Inc., William Bippus, and Mitchell Veh. Fort Apache says that in early 2009, it was approached by Ventum and its agents to invest in the Ramerio Creek Prospect, an oil and gas drilling venture in Live Oak County.
Veh and Bippus were reported to be responsible for the engineering, geological, and geophysical work on Ramerio. They allegedly made the Ramerio Prospect seem like a viable well, a lucrative project, and enticed Fort Apache to spend $200,000 on Ventum’s professional services. As more work ensued, Ventum explored Ramerio with a test well, the Sjolander #1 Well, that turned out to have no oil and only a zone “occupied by saltwater”.
Fort Apache contends it later learned that Ventum and its agents made false representations and prepared estimates based on a nearby well, the Tenneco Well. Fort Apache says that, “Had all of the scout tickets and historical information been evaluated in creating the Estimation, it would have been obvious that the targeted sands as seen in the Tenneco Well would not be productive in the Sjolander #1 Well.”
According to the brief, Ventum allegedly knew all along that the Ramerio was not a good investment. Fort Apache is charging Ventum and its agents with professional negligence, negligent misrepresentation, common law fraud, failure to disclose facts, vicarious liability, and Texas Securities Act violations. This suit will likely prove to be a complex case involving multiple disciplines in the oil and gas industry.
Austin, Texas oil and gas attorney Gregory D. Jordan not only understands the oil and gas industry from a legal perspective, but also knows the business from his time as a petroleum landman and petroleum engineer. Disputes over leases, royalties, property damage, and contracts happen frequently, and unfortunately some individuals and companies resort to unscrupulous tactics in the quest for profits. Jordan gives businesses, landowners, and individuals legal counsel in all such situations. He has more than 30 years of experience with the oil and gas industry. To learn more, please go to http://www.theaustintriallawyer.com or call (512) 419-0684.