Bloomberg News reports that the dispute centered on payments for rights to drill in the Eagle Ford, a shale formation underlying much of central and south west Texas that has helped put the U.S. in competition with Saudi Arabia and Russia for title of world’s largest oil producer.
Beneficiaries of the South Texas Syndicate Trust accused the bank, which was supposedly working on their behalf, of instead hatching favourable deals with commercial-banking clients Petrohawk Energy and Hunt Oil for cut-rate prices on the trust’s rights in the Eagle Ford, the highest-yielding oil field in the U.S.
Deal talks between the bank and the trust stalled and forced the start of a trial November 12 in state court in San Antonio while negotiations continued. The settlement was completed November 14 as jurors heard a third day of testimony, according to lawyers for both the bank and trust’s beneficiaries.
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