E&P Laredo Oil Inc.’s subsidiary Lustre Oil Co. has settled a three-year lawsuit with Erehwon Oil & Gas LLC and A&S Minerals Development Co. LLC (ASMD), Laredo Oil said in a March 11 press release.
The confidential settlement agreement resolves a title dispute between the parties regarding mineral rights in Valley County, Montana, and includes an undisclosed cash amount.
The agreement “provides clear title to both parties regarding their mineral rights. I feel this settlement positively resets our relationship with ASMD and we look forward to working with ASMD as we develop our mineral rights in the area,” Mark See, chairman and CEO of Laredo Oil, said in the release.
The suit arose in February 2021 when Lustre filed a quiet title action to establish the company’s rights related to mineral leases in Valley County, according to Laredo Oil’s Securities and Exchange Commission filings.
Lustre also sought damages related to A&S to “improperly produce oil on the property subject to Lustre’s mineral leases,” regulatory filings show.
In June 2023, the Montana Seventeenth Judicial District Court granted the defendants’ motion to dismiss without addressing the merits of Lustre’s quiet title action.
Lustre appealed the decision to the Montana Supreme Court and on April 6, 2023, the court’s unanimous decision reversed the “District Court’s decision related to Lustre’s quiet title action and remanded the case to the District Court for further proceedings,” according to Laredo’s SEC filings.
Lustre filed an amended complaint in June 2023 with the district court to reopen the original suit with a different judge.