March 01– Mar. 1—Sanchez Energy, the third most active driller in the Eagle Ford Shale of South Texas, is facing a pair of royalty lawsuits — just a week after getting delisted from the New York Stock Exchange.
Cathexis Royalties & Minerals LP and DJH Minerals LP sued Sanchez Energy and two of its subsidiaries in a pair of lawsuits filed in two state district courts in Harris County late Wednesday afternoon.
Both headquartered in Houston, Cathexis and DJH allege that Sanchez underpaid millions of dollars of royalties on more than 105,000 acres of oil and natural gas leases in Dimmit, LaSalle and Webb counties over the past two and a half years.
Sanchez Energy officials could not immediately be reached for comment. Court records show that the company has not been served on the lawsuits.
The lawsuits were were filed days after Sanchez Energy was delisted from New York Stock Exchange on Feb. 20 for failing to keep its stock price above $1 per share.
The Cathexis lawsuit against Sanchez landed before Judge Latosha Lewis Payne with the 55th State District Court. The royalties and mineral leasing company is seeking more than $1 million in damages from Sanchez.
DJH’s lawsuit against Sanchez landed before Judge Kyle Carter with the 125th State District Court. The company is seeking more than $4.8 million of damages from Sanchez.
Cathexis and DJH manage varying stakes of mineral interests for the 105,000 acres of oil and natural gas leases in the lawsuits. Sanchez Energy leased the acreage on the same same day in August 2016.
The two royalty and mineral leasing companies hired different attorneys and filed separate lawsuits. Cathexis is represented by Greg Waller with the Austin law firm Hunton Andrews Kurth LLP. DJH is represented by Larry Veselka with Houston law firm Smyser Kaplan & Veselka LLP.
Launched by the family of influential Laredo businessman and former Texas gubernatorial candidate Tony Sanchez Jr., Sanchez Energy was founded in the early days of the Eagle Ford Shale boom in 2011. Sanchez’s son Tony Sanchez III serves as the company’s CEO.
With 188 drilling permits filed last year alone, Sanchez Energy was ranked as the third most prolific driller of the South Texas shale play in 2018.
The company’s South Texas wells produced more than 6.4 million barrels of crude oil and more than 181.9 billion cubic feet of natural gas during the first 10 months of 2018, Railroad Commission of Texas data shows.
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