Attention royalty owners in Payne, Dewey, Noble, Logan, Lincoln and Garfield, the Contango Resources wells are owned by KKR, even though Contango remains operator of the wells, it is the wholly owned subsidiary of Crescent Energy, Crescent Energy is owned by KKR. KKR’s hiding under not one but 2 companies. A large number of royalty owners in Contango wells have never received their share of the royalty and anybody that remembers the devastation of the Samson bankruptcy will remember epic financial losses and Oklahomans’ loss of jobs, careers, homes, etc., all orchestrated by KKR, who interestingly enough walked away from the chaos without a scratch. The difficulty I’ve experienced in recovering funds owed my company, Bo-Li as well as others, it matches what happened at Samson; royalty owners were the first and most deeply burned, never recovering millions in royalties from Samson wells. Here’s where it gets difficult, there are a number of royalty owners in the Contango wells that were sent OCC notices at very old addresses, Contango may have addresses, but just do not pay, or, of course, there could be title issues that you were never informed existed, and that kept you from being paid. PLEASE NOTE: per Oklahoma law, royalties not paid to owners should have been escheated to the state of OK, where you can easily find by a search of the treasurers website. Only a very small percent were escheated to the state, Contango and their predecessors should have maintained a separate suspense account, and if they did, it’s now in the hands of KKR and will never see the light of day. There is another thread on this site, Failure to Pay Royalties-Contango/Crescent Energy Company. Lots of people with knowledge of this situation have posted and you can get info from there. If you discover you are owed revenue from any of these wells, do not wait to file liens, an example is provided. KKR did not become the most hated company owning energy assets in Oklahoma without good cause, and succeeded in spite of stiff competition. Good Luck! Lisa
KKR is not an energy company. They are a private equity company that invests in a plethora of businesses, energy being one of them.
Changed it. Thank you!
Todd, you are correct. KKR is a very large private equity company. Contango is a subsidiary of Cresent and that’s where the buck stops for royalty owners. Cresent is not free from legal entanglements due to the actions or inactions of Contango. I’m not giving advice on what to do but I would include Cresent in my liens along with Contango and demand my leases and/or JOBs to be honored by both.
I failed to clarify, so this is how KKR&Co comes to be owner of the Contango wells, which was reported by another contributor in a much earlier thread. Contango, a public company, merged with the much larger (3-4X) Independence Energy, a company owned by KKR. and it’s actually called a “reverse merger” since the larger company was privately owned. The resulting public company is Crescent Energy, of whom KKR is majority stock holder, they appoint 100% of the board, directors, etc. Also, KKR Energy Real Assets is the manager of both Contango and Crescent.
Yes, but Cresent owns controlling interest in Contango.
Yes. When I did the liens, i styled it as Contango Resources, Inc., subsidiary of Crescent Energy. If it should be different, let me know. Thanks!
@llee, thanks for all of the information, and insight.
If you have checked your title opinion for defects and have sent a signed division order you may want to send an Affidavit of Ownership to Cresent and Contango. Since Cresent has the controlling interest in Contango it has a legal responsibility to make sure Contango is paying all royalty owners of legal record and subject to signed division orders. I would contact an attorney an inquire about whether or not you need to file a lien against Cresent also. You may even want to contact your local District of Attorney about your situation. Be completely sure you have a legal right of ownership to the minerals in question and that you have a clear title. Sending the Affidavit of Ownership simply makes it without doubt that you are the legal owner and you have provided all the information an operator/payor needs to send you your royalty payments on time and pay any past due amounts with interest. Also, be sure you have sent Cresent and Contango a signed division order. You may want to send everything and anything to Cresent and Contango by certified mail with return receipt. That way the left hand can’t claim it didn’t know what the right hand was doing.
Thank you Martha….clearly this isn’t your first rodeo! You made a really important point: BOTH Contango and Crescent Energy should be on any emails, letters, liens, etc.
You are welcome and I’ve been in the oil and gas biz for 40 years. Many moons and many rodeos.
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