.png)
In IFP Technologies (Canada) Inc v EnCana Midstream and Marketing, 2022 ABKB 807, the Court considered for the first time how to perform an accounting of profits from an oil and gas working interest between tenants in common where there is no operating agreement in place between the owners. The case has a long history and involved accounting for the profits earned by numerous operators over a twenty two-year period. Factual background In October 1998, IFP Technologies (Canada) Inc. (IFP), entered into an Asset Exchange Agreement (AEA) with PanCanadian Resources (PCR) where IFP received 20 percent of PCR’s working interest in the petroleum and natural gas rights of Eyehill Creek. At the time, IFP and PCR believed that primary production was likely finished at Eyehill Creek and the parties expected to jointly pursue a steam-assisted gravity drainage (SAGD) project. The parties’ operating agreement for a possible SAGD project specifically excluded IFP from receiving profits or paying costs associated with primary production from the lands. Several years after signing the AEA, the economics of a SAGD project looked poor. In May 2001, PCR agreed to sell its interest to The Wiser Oil Company (Wiser) in exchange for Wiser undertaking certain […]
CamTrader offers a preview only. View original article. www.jwnenergy.com
