UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 6, 2005
PYR Energy Corporation
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(Exact name of registrant as specified in its charter)
Maryland 001-15511 95-4580642
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
1675 Broadway, Suite 2450, Denver, Colorado 80202
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (303) 825-3748
Not Applicable
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 8.01 Other Events
On July 29, 2005, PYR Energy Corporation (the "Company") filed a lawsuit in
the U.S. District Court for the Eastern District of Texas, Beaumont Division
against Samson Lone Star Limited Partnership ("Samson") and Samson's parent
company, Samson Resources Corp. The Company alleged in its complaint that
Samson, the operator of a producing gas well in Jefferson County, Texas named
the Sun Fee No. 1 Sidetrack Well (the "Sun Fee Well"), has breached its
obligations to the Company, which owns interests in the property on which the
Sun Fee Well is located, by joining, without authorization, the Sun Fee Well
into a unit with other properties in which the Company has no interest, many of
which are non-productive. Samson has a large interest in these properties that
Samson has joined into the unit. Pursuant to Samson's proposed pooling
configuration, the Company's working and overriding royalty interests in the Sun
Fee Well would be reduced substantially. The Company believes that Samson has no
legal or contractual right to reduce the Company's interests in this manner. The
Company is seeking monetary damages for all payments due and owing to the
Company based on the proper, undiluted interests in the property.
Samson has also informed the Company that Samson has terminated royalty and
other payments on production from the Sun Fee Well to the Company. The Company
has given notice to Samson of the Company's exercise of its right to
take-in-kind the Company's share of production from the Sun Fee Well. The
Company believes that exercise of its right to take-in-kind is pursuant to Texas
law and is consistent with the terms of the operating agreement concerning the
Sun Fee Well, which will allow the Company to receive the future production
revenue attributable to its interests. In addition, the Company plans to
continue to pursue its rights with all appropriate legal action to either be
paid its revenues relative to the Sun Fee Well production or receive its
production in kind.
On August 22, 2005, Samson filed a lawsuit in the District Court for
Jefferson County, Texas, 58th Judicial District against the Company, claiming
that Samson has the right to serve as operator to drill and operate on the
property to the east of the Sun Fee Well, which is located on property in which
the Company owns a majority interest. The Company holds an 100% interest in oil
and gas leases that comprise 75% of the approximately 400-acre parcel on which
it is planning to drill a gas well to the same reservoir from which the Sun Fee
Well produces. In June 2005, the Company notified Samson of its intention to
drill a well on this property and offered Samson the opportunity to participate
in the well. Samson elected to participate in the well and demanded to be
allowed to operate the well. Upon the Company's initial preparation of the drill
site, which began in August 2005, Samson filed a lawsuit seeking a judicial
declaration of Samson's exclusive right to operate the well and injunctive
relief enjoining the Company from continuing its drilling operations or serving
as operator.
The Company will continue to vigorously pursue and defend its rights with
respect to the foregoing litigations. The Company intends to continue to move
forward with construction of the potential drill site and to drill the well in
order to protect its interests in the underlying leases until such time as the
issue is fully adjudicated.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: September 6, 2005 PYR ENERGY CORPORATION
By: /s/ D. Scott Singdahlsen
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D. Scott Singdahlsen
Chief Executive Officer and
President