pending lawsuit......interesting story, who would have thought an American company could suffer such ecomonic losses when attempting to make a deal with a $300 million CND company. On a serious side, what's the implication on the PD/PLA deal?
Plains Energy Advised of Claim By Pride International, Inc.
CALGARY, June 27 /CNW/ - Plains Energy Services Ltd. announces that it has been advised of legal proceedings commenced against Plains Energy and Precision Drilling Corporation by Pride International, Inc. in Harris County, Texas. Pride's claim against Plains alleges breach of an alleged contract. Pride's claim against Precision alleges tortious interference with alleged contractual relations between Plains Energy and Pride. The claims allege Pride suffered actual economic damages of U.S. $500,000,000 and Pride seeks recovery of such amount and unquantified punitive damages.
Plains Energy considers the claims by Pride to be entirely without merit.
Plains Energy and Precision have entered into a pre-acquisition agreement contemplating an amended offer by Precision to acquire all of the issued and outstanding shares of Plains Energy dated June 22, 2000, which amended offer was unanimously recommended for acceptance by the Board of Directors of Plains Energy.
Plains Energy understands that Precision has mailed a Variation of Offer and Plains intends to mail a Directors' Circular recommending acceptance of the amended Precision Offer as soon as practicable.
Plains Energy is a leading integrated oil and gas service provider, focused on the practical application of technology throughout its operations in drilling, wireline services, downhole tools, well servicing, production testing and underbalanced drilling.
Plains Energy's shares are listed on The Toronto Stock Exchange and trade under the symbol ``PLA''.
For further information
Ken Mullen, President and CEO, Tel: (403) 264-6299, Fax: (403) 264-6164, email: info@plainsenergy.com, internet: www.plainsenergy.com