Update March 2016: SEC Alert Warning Investors to Be Wary of Oil & Gas Investments

Update March 2016: SEC Alert Warning Investors to Be Wary of Oil & Gas Investments 150 150 Robert Rex, Esq.

 MARCH 2016-After the dramatic collapse of oil prices in the past year, it is apparent that a 2013 SEC investor alert, which we discussed nearly three years ago, was something investor would have been wise to have heeded.

Brokers and financial advisors were on notice of the alerts from regulators when making investment recommendations to their investor customers.


If you suffered significant losses in oil and gas investments made upon the recommendation of your broker, you may be able to recover damages through FINRA arbitration. Call to speak to an experienced securities attorney. See contact information below.


On May 2, 2013, the Securities & Exchange Commission (SEC) issued and investor alert on considerations investor should be aware of when investing in private oil &  gas offerings. Follow this link to access the entire document on the SEC website. This warning is much like a similar warning from the North American Securities Administrators Association in March 2013.

The SEC warns that investing in any private security offering contains unique risks, but oil and gas offerings have additional risks to consider. They list these common red flags often used to tout these investments to potential investors:

  • Sales pitches referring to recent news events like high oil or gas prices.
  • “Can’t miss” wells and “guaranteed” returns, including claims that major oil and gas companies are drilling nearby.
  • Abnormally high rates of return.
  • Unsolicited materials.
  • Sales tactics that pressure you to decide, like “limited” or “once-in-a-lifetime” opportunity.
  • Sales pitches touting new technology, especially if it relates to
    getting higher production out of low-producing wells (sometimes called
    “stripper” wells).
  • Salesperson claims to be an investor.
  • Being asked to sign documents acknowledging that the securities laws do not apply to the investment.

A listing of some of the oil & gas private placements recently offered to investors:

  • Adageo Energy
  • Alliance Petroleum Corporation
  • Alpha Energy
  • Atlas Energy L.P.
  • Aztec Oil & Gas
  • Black Diamond Energy
  • Bradford Energy
  • Catalyst Energy
  • Gulf Coast Rig & Equipment
  • Discovery Oil & Gas Partners
  • Mewbourne Energy
  • Noble Royalties
  • Penneco Drilling
  • Reef Oil & Gas Partnerships
  • Ridgewood Energy Fund
  • Sandridge Energy
  • South Central Region Private Limited Partnership
  • South Central
  • Texas Energy
  • Tidal Petroleum
  • U.S. Energy
  • Waveland Capital
  • Waveland Oil & Gas

If you believe you are a victim of stockbroker fraud or negligence, you may be able to recover losses through FINRA arbitration which is much quicker and less costly than litigation in court. Most cases are done on a contingent fee basis and are generally completed in a year or less.

If you have questions or complaints about losses in your brokerage account, call us for a no charge consultation.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 


Verified by MonsterInsights