PYR Pyr Energy Corp

DENVER, Sept. 20 /PRNewswire-FirstCall/ -- The U.S. District Court for the Eastern District of Texas issued its ruling on the outstanding motions for summary judgment that had been filed by both parties, PYR Energy Corp. ("PYR") (AMEX:PYR), as Plaintiff, and Samson Resources Company and Samson Lone Star Partnership LLP ("Samson"), as Defendant. In its ruling, the Court held (1) that Samson did not have authority to pool PYR's original overriding royalty interest in the Sun Fee No. 1 Sidetrack Well, located in Jefferson County, Texas (the "Sidetrack Well") into the Sun Fee Sidetrack Unit (the "Sidetrack Unit") and, therefore, PYR is entitled to the interest in the production from the Sidetrack Well that is attributable to this 3.5% overriding royalty from the day of first production, rather than the 1.5% overriding royalty interest amount upon which Samson has been paying, and (2) that, although Samson did have authority to pool PYR's working interest into the unit, PYR would be able to maintain its claim for breach of contract against Samson for joining non-productive acreage into the unit. In its complaint in this suit, PYR has alleged that Samson breached its underlying contracts with PYR when Samson included in the Sidetrack Unit properties in which Samson held the exclusive interests and which PYR contends are non-productive. PYR believes that this action by Samson diluted PYR's unit-based interest accordingly. The Court also left for trial PYR's claims that Samson had also breached the underlying agreements by failing to assign to PYR its working interest in all properties as called for in the underlying contracts and by failing to give PYR geologic and other technical information applicable to the Sidetrack Well and Unit. The Court held that PYR's alternate claim that Samson owed PYR a fiduciary duty in forming the Sidetrack Unit was fully resolved by its other rulings. The Court has indicated that it will shortly resume a trial schedule for the issues and claims which remain unresolved by its order, while allowing the parties to consider immediate appeal on the rulings made to date in the summary judgment order. Upon the issuance of the Court's order, Mr. Kenneth R. Berry, Jr., PYR's President and Chief Executive Officer, commented: "We continue to review the Court's order and decision, which, in a careful and extensive manner, clearly vindicates the Company's key position on our overriding royalty interest in the Sun Fee No. 1 Sidetrack Well and also allows us to pursue the Company's remaining claims, including the technically based claim that the dilution of our working interest in the Sidetrack Well with non-productive acreage is invalid." PYR Energy had previously announced, on Sept. 6, the successful conclusion to the State Court injunction suit. These judgments by the State District Court and the U.S. District Court do not affect the status of the separate adversary proceeding brought by Trail Mountain Inc. ("TMI") against the Company and Samson in the Federal Bankruptcy Court for the Eastern District of Texas in which TMI has asserted that the property on which the proposed Tindall Well is to be located is subject to a certain contract between Venus Exploration Inc., which subsequently assigned its interest to the Company, and TMI, which would call for the sharing of the Company's interest in the property with TMI. The Company has asserted that it is not subject to the contract, and this matter is proceeding before the Bankruptcy Court on motions for summary judgment by all parties. PYR Energy will host a breakfast table at the IPAA OGIS West Annual Oil & Gas Conference to be held October 4-5, 2006 at 7:00 a.m. PDT at the Palace Hotel in San Francisco. Denver based PYR Energy is an independent oil and gas company primarily engaged in the exploration, development and production of natural gas and crude oil. At the current time, PYR's activities are focused in select areas of the Rocky Mountain region, Texas and Oklahoma Panhandle, East Texas, and the Gulf Coast. Additional information about PYR Energy Corporation can be accessed via the Company's web site at http://www.pyrenergy.com/. This release contains forward-looking statements regarding PYR Energy Corporation's future plans and expected performance based on assumptions the Company believes to be reasonable. A number of risks and uncertainties could cause actual results to differ materially from these statements, including, without limitation, the success rate of exploration efforts and the timeliness of development activities, fluctuations in oil and gas prices, the outcome of its current litigation proceedings, and other risk factors described from time to time in the Company's reports filed with the SEC. In addition, the Company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the Company's control. This press release includes the opinions of PYR Energy and does not necessarily include the views of any other person or entity. This release may not have been reviewed or approved by the operator and/ or participants in any of the projects discussed. DATASOURCE: PYR Energy Corp. CONTACT: Kenneth R. Berry Jr., CEO, or Tucker Franciscus, VP, both of PYR Energy Corp., +1-303-825-3748 Web site: http://www.pyrenergy.com/

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