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02 September 2010 / Mark Sefton , Oliver Radley-Gardner
Issue: 7431 / Categories: Features , Property , Commercial
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What lies beneath

Oil extraction & the Pointe Gourde principle: Mark Sefton & Oliver Radley-Gardner report

Oil is lighter than water, which is the key to how to extract it efficiently from an underground reservoir. The well is drilled as close as possible to the apex of the oil field. Then, as the oil is extracted, water is pumped in to replace it. The water sinks to the bottom of the reservoir, forcing the oil to rise to the top. That way, all of the oil will eventually work its way to the apex, and can be extracted. If the well cannot be drilled to the apex of the reservoir, then the extraction will be compromised and some of the oil will remain inaccessible.

Petroleum Production Act

It is this fact which, indirectly, gave rise to the litigation between Star Energy and Bocardo SA, which has now resulted in a decision from the Supreme Court, at [2010] UKSC 35, [2010] All ER (D) 333 (Jul). It concerns a high academic issue of what

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Signature Litigation—Catherine Naylor

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NEWS
Cheshire West, which established an ‘acid test’ for deprivation of liberty safeguards, has been overturned by the Supreme Court
The Chancery Division and other segments of the High Court are to be replaced by a new Business and Property Division (BPD), in a major civil justice shakeup
Law firms that hold client money will need to file annual accountants’ reports and make a declaration, the Solicitors Regulation Authority (SRA) confirmed this week
Two district judges and a tribunal judge have been sanctioned for delays in delivering judgments and orders
Private equity (PE) investment into UK law firms halved to £250m last year, but deal volume rose, according to research by Acquira Professional Services’ Momentum private equity market tracker
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