Swepi, L.P. v. Camden Resources, Inc.

OPINION

Opinion by

PHYLIS J. SPEEDLIN, Justice.

SWEPI, L.P. d/b/a Shell Western E & P (“SWEPI”), and KLT, Inc. and KLT Gas, den Resources, Inc. (“Camden”). We reverse the judgment of the trial court and remand for further proceedings.

Background and Procedural History

This case arises out of a dispute regarding the placement and drilling of a well on property formerly leased by the Casas family to SWEPI for oil and gas production (the “Casas Tract”). Although SWEPI has gas wells on the adjacent property, it never drilled on the Casas Tract because it did not believe there was sufficient gas to…