Investigation of Bradford Drilling XXIII LP
Are you concerned about your investment losses with Bradford Drilling XXIII LP? If so, The White Law Group may be able to help.
According to a letter from Bradford Energy Capital on November 7, the company has been unable to find a buyer for the working interest in their three remaining wells. In January they notified investors of a potential purchaser, but the deal fell through at “the 11th hour.” The letter also states that finding a buyer was always preferable to plugging, but unfortunately were not able to do so.
Reportedly, conditions haven’t improved and the three NYS wells are underperforming with no projection for improvement in the future. This is more bad news for investors.
Bradford has now accepted an offer from PPP Future Development (PPP), who agreed to “take the wells off our hands and absolve us of all liability and future costs.” The transfer was approved by the New York Department of Environmental Conservation and the BDA XXIII working interest in these wells was transferred to PPP on November 1, 2016.
What does this mean for investors?
According to the letter, after all expenses are paid, the company anticipates being able to make a small final distribution to the BDA XXIII partners of approximately $250 for a $100,000 investor before year end. Bradford also estimates there will be capital loss of approximately $1,500 for a $100,000 investor.
The White Law Group continues to investigate potential FINRA arbitration claims involving Bradford Drilling investments.
For more information on the investigation see, Investor Alert: Bradford Drilling Associate Investigation.
Bradford, an oil and natural gas drilling company since 1994, is located in Buffalo, New York. According to filings with the Securities and Exchange Commission (SEC), Bradford Drilling Associates have offered numerous private placements such as Bradford Drilling XXIII LP to raise funds.
Private placements are exempt from the typical registration requirements of the federal Securities Act of 1933. Brokers that sell private placements have a fiduciary duty to investors and should only recommend private placements to accredited investors or those who meet suitability standards. However, because of the high commissions earned, many brokers push the sale of private placements on investors that do not have the requisite experience to understand the investments.
Recovery of Investment Losses
If you suffered significant losses as a result of your investment in a Bradford Drilling XXIII LP private placement and were misinformed about the risks, you may have a valid securities arbitration claim against the broker-dealer.
To determine whether you may be able to recover your investment losses through a FINRA arbitration claim, please contact the attorneys of The White Law group at (888)637-5510 for a free consultation.
The White Law Group, LLC is a national securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, please visit http://www.whitesecuritieslaw.com.