Midstates Petroleum Prevails in Clovelly Lawsuit; Shares Rise 3%
Midstates Petroleum Company, Inc. ( MPO ) announced today that it has received a favorable unanimous opinion from the Louisiana State Supreme Court regarding the company's litigation with Clovelly Oil Company.
In the lawsuit, Clovelly alleged that Midstates is subject to an unrecorded Joint Operating Agreement (JOA) from July 16, 1972, as the result of the company's 2007 purchase of working interests in certain acreage in the Pine Prairie field.
The Louisiana Supreme Court unanimously ruled that the JOA does not apply to any leases acquired by Midstates after that date and that the JOA only applies to leases which were owned by the parties to the 1972 JOA at the time it was originally executed. The Supreme Court's decision eliminates any exposure to the company from this lawsuit, as all leases at issue in the matter were acquired after July 16, 1972.
MPO shares are up 2.8% to $8.55. Shares have a day's range of $8.36 - $8.70, with a 52-week spread of $4.71 - $16.95.