April 17, 2016 Comments (0) Blog

Reef 2011 Private Drilling Fund LP Investment Losses

Reef 2011 Private Drilling Fund
(Last Updated On: October 4, 2017)

Reef 2011 Private Drilling Fund LP Investigation

Have you suffered investment losses in Reef 2011 Private Drilling Fund LP? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

According to their website, Reef is an oil and gas company. Reef sponsored entities currently own an interest in approximately 3,000 wells in the United States. The companies activities are located in 15 states.  The core areas include concentration in the Bakken-Three Forks formations in North Dakota, the Permian Basin in West Texas and the Mid-continent.

Many oil and gas LPs have high expense ratios, and due to the decline in the overall health of the oil and gas market, are suffering. Some are on the brink of default, or worse yet, bankruptcy.  Such an outcome is extreme, but not unforeseen. It only highlights the unsuitability of these investments for most retail investors – particularly in large concentrations.

The Trouble with Alternative Investment Products

The company often raises money for investments through Reg D private placement offerings like the company did for Reef 2011 Private Drilling Fund LP.  These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%.

The trouble with alternative investment products, like Reef 2011 Private Drilling Fund LP, is that they involve a high degree of risk. They are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks and bonds.

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.

Recovery of Investment Losses

If you have suffered investment losses in Reef 2011 Private Drilling Fund LP or another Reef Oil and Gas private placement investment, please contact The White Law Group at 1-888-637-5510 for a free consultation.

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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.