Two energy companies end up in court over sale agreement

 

A lawsuit has been filed in Tulsa County District Court where Foster Energy, LLC is accusing Tidewater Energy Group of a breach of contract stemming from a November 2019 purchase and sale agreement.

Foster Energy, an Edmond based firm with primary business in Oklahoma, Pennsylvania and Texas contends it lost millions of dollars when Thomas Kivisto and Jason Old, doing business at the time as GAHI Acquisition Corp, did not follow through with the purchase.

They subsequently changed the name of their firm to Tidewater Energy Group, Corp and emailed Foster with the information.

“After Foster Energy had promised its employees over one million dollars in stay bonuses based upon the anticipated sale, TIDEWATER failed to close on the PSA breaching the agreement with Foster Energy,” alleged the lawsuit.

But the suit contends the email sent by Old was “an intentional misrepresentation by OLD intended to deceiver Foster Energy.”

The suit further contends that Tidewater at the time of the purchase-sale agreement had not been adequately capitalized or financed to close on the deal and was not formed until 3 days after the agreement was reached.

Foster Energy’s lawsuit also alleges that Old used confidential and proprietary information learned from Foster Energy in direct competition with Foster in a Tulsa firm called Redline Resources, LLC of which Old is a director and owner.

A judge in the case ordered Tidewater Energy to respond to the lawsuit by Dec. 7, 2020.

The lawsuit is case CJ-2020-3172 in Tulsa County District court.

 

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