17th Apr 2014 10:24
LONDON (Alliance News) - Endeavour International Corp Thursday said a multi-million dollar settlement has been reached with SM Energy regarding litigation filed against Endeavour Operating Corporation in December 2011.
The oil and gas exploration company said that on Wednesday the parties involved reached an agreement to settle the litigation in which Endeavour will pay SM Energy USD5 million, issue a note for USD4.5 million and issue warrants valued at USD3.8 million.
The company said the note will be paid in three graduated payments beginning in twelve months and the total settlement expense will be recorded at USD19.3 million, which includes deposits of USD6 million paid prior to the execution of the agreements.
The settlement relates to an agreement from July 2011 in which Endeavour entered into agreements with SM Energy for the purchase of oil and gas leases, producing properties, geophysical data, a pipeline and related assets in the Marcellus shale play in Pennsylvania for an aggregate consideration of approximately USD110 million.
In December 2011, Endeavour terminated the agreements based on its view that title defects to the properties exceeded contractual thresholds and the pipeline was not in compliance with regulatory standards, leading to the SM Energy lawsuit.
Endeavour International shares were untraded Thursday at USD2.93.
By Tom McIvor; [email protected]; @TomMcIvor1
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