A Texas judge has rejected Gulfport Energy Corp.’s allegation that an oil and gas exploration company improperly backed out of a $26 million deal to acquire Marcellus shale assets in Ohio.
Tarrant County District Court Judge Kimberly Fitzpatrick on Thursday granted summary judgment in a brief order for Quantum Energy Partner-backed TH Exploration LLC, or Tug Hill, which argues that it was under no obligation to pay for the assets because Gulfport Energy had not fulfilled all of the terms of the purchase and sale agreement, according to a Thursday order.
Tug Hill argued that Gulfport was required to obtain releases from third parties connected to the oil and gas assets in question. Those releases were never sufficiently obtained by the appropriate date, according to Tug Hill.
“The PSA’s plain terms required Gulfport to obtain releases of the dedication agreements by the extended closing date; because there is no genuine issue of material fact that Gulfport failed to do so, Tug Hill was never obligated to close, and Gulfport has no basis to assert a breach of contract claim or to request specific performance as a matter of law,” Tug Hill argued in its December summary judgment motion.Read more by clicking here.