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Associated Press, Published January 19 2011

Lawsuit dropped in North Dakota oil well case

FARGO, N.D. (AP) — A lawsuit filed by a company that claimed it was owed money for helping to extract oil from North Dakota has been dismissed less than one week after it was filed.

Denver-based Sanjel Inc. said in court documents it was owed more than $3.5 million from Abraxas Petroleum Corp. for work done on oil wells in McKenzie County in November. Sanjel said the payment was due by the end of the December. The suit was filed on Jan. 12.

Chris Williford, chief financial officer for Texas-based Abraxas, says the company was negotiating some aspects of the work and was surprised about the lawsuit. He says the bill has been paid in full.

Sanjel's specialty is hydraulic fracturing, a process that uses pressurized fluid and chemicals to break open oil-bearing rock.

Copyright 2011 The Associated Press.