Mesquite Energy Strikes $2 Million Settlement With Sanchez Family

Mesquite Energy Inc. asked a Texas bankruptcy court to approve its settlement with the founding Sanchez family over litigation tied to company control and handling of sale profits.

Under the settlement terms, the Sanchez family and their related entities will pay $2 million to Mesquite, an oil driller formerly known as Sanchez Energy. In return, the family and its entities will be released from future liability related to Sanchez Energy’s bankruptcy that largely ended in 2020.

The settlement would bring an end to “uncertain and burdensome” prosecution of Mesquite’s claims against the Sanchez parties, Mesquite said in a motion Thursday. ...