Energy Companies Pressing Texas Lawsuit against Apache Corp. over Oil and Gas Payment Shortages, Lease Terminations

Posted on Monday, April 18, 2016

MIDLAND, Texas – Two Texas-based energy companies and a third from Oklahoma are moving forward with their state district court lawsuit against Houston-based Apache Corp. (NYSE: APA). As described by Apache in its SEC filings, the case involves potential damages of more than $1.1 billion relating to certain purchase and sale agreements, mineral leases, and mutual interest agreements concerning properties located in the Texas counties of Hartley, Moore, Potter and Oldham.

Noted Texas attorneys Zona Jones and Michael Havard of Provost Umphrey Law Firm; Louis K. Bonham of Osha Liang LLP; and Patrick Zummo of the Law Offices of Patrick Zummo recently joined the legal team representing the three companies. Accomplished lawyers David Lauritzen, Bradley Bains and Joe Baker of Cotton Bledsoe Tighe & Dawson, PC, filed the original lawsuit and will continue to represent the same companies.

The dispute centers on contracts Apache signed in 2011 with Texas-based Apollo Exploration LLC and Oklahoma’s Cogent Exploration Ltd. Co. and SellmoCo LLC covering a series of oil and gas leases in the Texas Panhandle. Under the contracts, the three companies were entitled to reclaim up to one-third of the interests they sold to Apache. However, the oil and gas companies say Apache never provided the required documents for 2012 and 2013.

The plaintiffs are asking the court to order Apache to provide a proper accounting of the drilling and payout records associated with their contracts since they say Apache has failed to provide proper documentation from the start.

In addition to the requested accounting and the allegations of breach of contract and fraud, the lawsuit also includes claims against Apache for breach of fiduciary duty, negligence, gross negligence and conversion, among others. The case is Apollo Exploration LLC, et al. v. Apache Corp., No. CV-50538, in the 385th District Court in Midland.

For more information, contact Bruce Vincent at 800-559-4534 or

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