Key Points:

• Background:
  • In 2016, Cleo Energy, overseeing hundreds of wells needing abandonment, contracted Savanna for tubing removal services.
  • The contract was based on an industry standard form with specific terms added in a Service Work Order, including a day rate of $5,310 per rig.
  • Cleo Energy terminated Savanna’s contract mid-project, transferring the work to a competitor.
• Dispute:
  • Savanna issued invoices for the services provided, totaling $605,867. Cleo Energy failed to pay, resulting in a lawsuit.
  • Cleo Energy appealed after the court granted summary judgment in Savanna's favor, increasing the total owed to over $1,000,000 due to interest.
• Key Legal Issues:
  • The contract included an entire agreement clause, preventing Cleo from relying on any unwritten representations.
  • Cleo argued the contract should reflect informal representations about work pace, but this was dismissed.
• Court Decision:
  • The appeal was dismissed, as there were no material errors in the original judgment.
  • Cleo was ordered to pay all outstanding amounts, and if parties can't agree on costs, submissions were invited.

Outcome: Appeal dismissed, with Cleo Energy liable for over $1,000,000.