Here is a twist - Weatherford is going back in on their dime
Gothic Resources Inc - News Release
Gothic provides update on stuck string lawsuit
Gothic Resources Inc GCR
Shares issued 13,812,346 2000-09-13 close $0.73
Wednesday Sep 13 2000 News Release
Mr. Stephen Kenwood reports
Gothis is a working interest participant in the Winfield Ranch No. 17-1E well which was drilled, logged and cased to a total depth of 25,740 feet. Log analysis indicated a potential for more than 1,100 feet of gross pay in the Ellenburger formation, a highly prolific gas zone in the region and the primary objective of the well. In early December, 1998, during operations to clean out the production casing, a string of drill pipe manufactured and supplied by subsidiaries of Weatherford International, Inc. parted and became stuck in the bottom section of the hole. The same string of pipe parted a second time during efforts to retrieve the stuck string. Efforts to retrieve the stuck string were not successful. When settlement discussions with Weatherford and its insurers failed to yield an acceptable settlement, in March, 1999, the working interest owners together with the operator, Baytech Inc., filed a lawsuit against Weatherford in state court in Pecos county, Texas. The lawsuit against Weatherford seeks compensatory damages, exemplary damages and attorney fees as a consequence of the pipe failures. The company is confident of a favourable outcome in the litigation.
Weatherford has now announced its intention, in an effort to mitigate damages, to re-enter the Winfield Ranch No. 17-1E well and attempt a sidetrack, at its sole risk and expense, into the Ellenburger formation. The working interest owners have made no agreement with Weatherford other than consenting to allow Weatherford to attempt mitigation efforts. To date, Weatherford has not commenced operations. The working interest owners will continue to prosecute the lawsuit. Trial of the lawsuit is presently set for Dec. 4, 2000, with an alternative date of Jan. 22, 2001.
Gothic holds an 18.22-per-cent interest prior to payout and an 11.84-per-cent interest after payout in the Winfield Ranch No. 17-1E well and owns the same percentages in the recovery, if any, in the lawsuit against Weatherford.
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