Texas Court Reverses Ruling On Oil Cos.' Covenant

Law360, New York (August 10, 2009, 7:37 PM EDT) -- A Texas appeals court has thrown out a covenant not to compete that two drillers entered into in the wake of a $34 million rig sale, overturning a lower court decision.

The territorial covenant not to compete between Bandera Drilling Co. and Sledge Drilling Corp. — now owned by Basic Energy Services Inc. — is not valid, Judge Rick Strange of Texas' Eleventh Court of Appeals said in an opinion Thursday. The decision reverses and remands the trial court's ruling.

Bandera sold Sledge $34 million in...
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