Have you suffered losses investing in Arabella Petroleum? If so, the securities attorneys of The White Law Group may be able to help you recover your losses in a FINRA arbitration claim against the brokerage firm that recommended the investment.
Arabella Petroleum Company, LLC explores and operates oil and gas properties. The company is based in Fort Worth, Texas. On July 10, 2015, Arabella Petroleum Company, LLC filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Western District of Texas.
The Fort Worth, Texas-based company said July 22, 2015 it entered into agreements with a third party buyer and McCabe Petroleum Corp. to sell its ownership interest in certain Permian Basin properties for cash and assets.
In the agreements, Arabella will transfer its Locker State, Graham, Woods, Jackson and Emily Bell prospects to the buyer. In exchange, Arabella will receive $15 million in cash from the buyer and certain properties from McCabe.
Proceeds will primarily be used to pay $10 million of the Arabella’s $16 million outstanding senior secured notes. The remaining proceeds will be used to repay other debts, the development of properties and general corporate purposes, according to the company.
Unfortunately, many investors were not made adequately aware of the risks associated with energy investments. Oil and gas investments are generally speculative and can be very high risk ventures. They are arguably better suited for sophisticated and institutional investors that can afford total loss of their investment. Even bonds in the oil and gas industry, which many investors think of as “safe,” are not without risk.
Before recommending an investment, your broker has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine if the investment is suitable for the investor. Brokers that fail to perform the necessary due diligence prior to recommending them to clients could be liable for investment losses.
To determine whether you may be able to recover investment losses incurred in Arabella Petroleum please contact The White Law Group at (888)637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. Visit our homepage to learn more about the firm.