DENVER, Sept. 6 /PRNewswire-FirstCall/ -- PYR Energy Corporation ("PYR") announces that, the State District Court for Jefferson County, Texas, 58th Judicial District, issued a final summary judgment in the Company's favor against Samson Lone Star Limited Partnership, LLP, ("Samson") in its suit to enjoin the Company's drilling of the proposed Tindall Well, located in Jefferson County, Texas. As previously reported, on the grounds that it had the exclusive right to serve as operator to drill the proposed Tindall Well, Samson had filed suit to enjoin or prevent the Company from drilling the planned well on the approximately 400-acre property in which the Company holds 100% of the oil and gas interest. The property is located directly east of the Samson operated Sun Fee No. 1 Sidetrack Well, which is also located in Jefferson County, Texas. Upon recent mutual agreement of the parties, no appeal will be taken from the final judgment.
This judgment by the State District Court does not affect the status of the Company's claims asserted in a separate lawsuit against Samson and its parent, Samson Resources Company, in the U.S. District Court for the Eastern District of Texas in Beaumont, Texas that Samson has improperly diluted the Company's interest in the Sun Fee Sidetrack No. 1 Well, which case is currently before the court on motions for summary judgment by both parties. This judgment by the State District Court also does not affect the status of the separate adversary proceeding brought by Trail Mountain Inc. ("TMI") against the Company and Samson in the federal Bankruptcy Court for the Eastern District of Texas in which TMI has asserted that the property on which the proposed Tindall Well is to be located is subject to a certain contract between Venus Exploration Inc., which subsequently assigned its interest to the Company, and TMI, which would call for the sharing of the Company's interest in the property with TMI. The Company has asserted that it is not subject to the contract, and this matter is proceeding before the Bankruptcy Court on motions for summary judgment by all parties.
PYR Energy will host a breakfast table at the IPAA OGIS West Annual Oil & Gas Conference to be held October 4-5, 2006 at 7:00 a.m. PDT at the Palace Hotel in San Francisco.
Denver based PYR Energy is an independent oil and gas company primarily engaged in the exploration, development and production of natural gas and crude oil. At the current time, PYR's activities are focused in select areas of the Rocky Mountain region, Texas and Oklahoma Panhandle, East Texas, and the Gulf Coast. Additional information about PYR Energy Corporation can be accessed via the Company's web site at http://www.pyrenergy.com/.
This release contains forward-looking statements regarding PYR Energy Corporation's future plans and expected performance based on assumptions the Company believes to be reasonable. A number of risks and uncertainties could cause actual results to differ materially from these statements, including, without limitation, the success rate of exploration efforts and the timeliness of development activities, fluctuations in oil and gas prices, and other risk factors described from time to time in the Company's reports filed with the SEC. In addition, the Company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the Company's control. This press release includes the opinions of PYR Energy and does not necessarily include the views of any other person or entity. This release may not have been reviewed or approved by the operator and/or participants in any of the projects discussed.
