AGREEMENT CONSTRUED FOR INVESTOR, AGAINST PROMOTER

摘要

The court in XCO Production Co. v. Jamison, 194 S.W.3d 622 (Tex. App.-Houston [14th Dist] 2006, pet, filed), construed an investor participation agreement under which Jamison contributed 500,000 dollors for a working interest provided by XCO in several Louisiana oil and gas properties. The parties' dispute centered on Paragraph 9 of the agreement, allocating items of cost and revenue between the parties: (a) First, all [intangible drilling costs] and general and administrative costs paid from December 13, 1991 through December 31,1992, shall be allocated to JAMI-SON, provided, however, that no such amounts shall be allocated to JAMISON which would cause his fair market value capital account to become negative or increase its negative position.