Oklahoma City-based SandRidge Energy Inc. finds itself in a legal battle with a geologic information company that filed Chapter 11 bankruptcy in the federal courts in Houston, Texas. It’s a case of one bankrupt company doing battle with another bankrupt company over a contract.
WesternGeco LLC is asking a bankruptcy judge to allow the firm to end its contract with SandRidge Energy, according to court documents and to a report in the Journal Record.
At stake is the contract that WesternGeco had to provide proprietary geologic information to SandRidge Energy. The proprietary information is seismic data that is used by companies to base where they will drill for oil and gas. In this case, WesternGeco had a contract with another company that was acquired by SandRidge in 2012. But the contract also gave WesternGeco the right to terminate the contract at any time if SandRidge entered bankruptcy, which is has.
Now WesternGeco is asking a bankruptcy judge to do just that—break the contract. The case is: 16-03154, WesternGeco, LLC v. SandRidge Energy, Inc. in bankruptcy court in the Southern District of the U.S. Courts in Texas.