Scott Files Suit Over $2.8 million Oklahoma Oil Venture

Scott Properties and Affiliates CEO Joe Scott filed suit in St. Louis County on November 8 against Indiana based BuRay Energy International and Oklahoma based 4 Square Gas concerning a $2,800,000 investment he and others made in 2007 with the companies.

Creve Coeur based Scott Properties owns and manages more than 2 million sq. ft. of office, medical, retail and warehouse space in the region and reported revenue of $165 million in 2010. It also has holdings in Florida, Nevada, and Tennessee.

Scott’s portfolio also has interest in a diverse group of companies spanning a variety of industries including the hospitality, agricultural, manufacturing, and retail market sectors.

Scott also owns Crown Valley Brewing and Distilling Co. in St. Genevieve, Missouri and Summer Bay Resort in Orlando, Florida.

Crown Valley Brewing and Distilling Co. recently has produced and bottled two popular craft beers known as Gunslinger Double IPA and Farmhouse Lager while Summer Bay Resort is located on a private 64-acre lake six miles from Walt Disney World.

Scott, a Ladue resident, alleges in court documents that BuRay and 4 Square managers Donald Portell and John Schofield solicited him and others to invest in a joint venture regarding the exploration and development of natural gas in Talihina, Oklahoma which is in Le Flore County.

In December of 2007 Scott and others in the trust entered into a contract which provided that the trust would invest $2,800,000 in BuRay in exchange for a 44% working interest in the oil and gas lease known as McCoy 1-13.

Scott further alleges that on August 1, 2008 the defendants had not satisfied terms of the contract and would now be obligated to pay monthly interest payments of $237,663.69 until such time as terms of the contract were satisfied. Scott maintains in the court documents that the defendants have not made an interest payment since August of 2009.

According to Burks Oil & Gas Properties, “BuRay Energy International is currently requesting proposals for the acquisition of its operated gas wells, leases, and drilling prospects in Le Flore County, Oklahoma. BuRay is resource rich but lacks capital to exploit its gas discovery.”

Burks Oil & Gas Properties provides extensive property divestment and acquisition services to the upstream petroleum industry.

Steven M. Cohen of Berger, Cohen & Brandt is representing Scott. Calls placed to Cohen and BuRay Energy International seeking comment have not been returned.