Amoco Production Company v. Horwell Energy, Inc., Gardes Directional Drilling

This case requires us to determine whether, under Louisiana law, a drilling contractor who drills to earn an interest in the well has a privilege on the lease and well. Because we conclude that no amount is due within the meaning of the statute, we hold that the Appellant has no valid privilege and therefore affirm the judgment of the district court.

I

The facts are largely undisputed. Amoco Production Company owned a mineral lease in Caddo Parish, Louisiana. It contracted with Horwell Energy, Inc., to operate the lease and drill a test well. -Horwell was to receive an eighty percent interest…