Soreide Law Group is reviewing possible investor claims against brokers and financial advisors who sold investors Weatherly Oil and Gas LLC. Evidently, Weatherly, an oil and gas acquisition and exploitation company, is private-equity backed and concentrates in the region of Texas, Louisiana and Arkansas. The company controls more than 800 well bores strewn across a couple hundred thousand acres. Notably, Weatherly Oil and Gas LLC filed for bankruptcy in the Southern District of Texas on February 28, 2019 under Case #:19-31087. As of April 30, 2019, the company has $96,200,170.00 in outstanding secured debt and another $6,447,036 in unsecured debt.
Weatherly reportedly attributes its struggling financial state to the reduction in commodity prices. The company cited changing lending practices, claiming that a cash-flow approach has basically replaced a reserves-based approach. Evidently, with this changing landscape in lending practices, the company supposedly had trouble generating capital. As a result, instead of free cash flow going towards capital expenditures, it went towards paying the debtor’s senior debt holders. Essentially, Weatherly suffered from expensive production costs and lack of capital. Therefore, Weatherly reported that it plans to sell assets to a number of purchasers prior to liquidating.
It is possible some brokers or advisors recommended Weatherly Oil and Gas LLC to investors without adequately discussing risks. By misrepresenting or omitting information about the risks, investors potentially purchased investments that they would not have otherwise purchased. Unfortunately, investors often do not realize the true extent of the risks until they have already suffered losses. Moreover, some stockbrokers and financial advisors possibly placed too much of investors’ assets in the risky oil and gas investments. This can cause investors to be overexposed to losses. Also, it is possible that brokers and advisors unreasonably sold Weatherly investments to conservative investors. Fortunately, investors can sue their brokers or financial advisors for losses caused by misrepresentations or unsuitable recommendations.
Have you suffered losses by investing in Weatherly Oil and Gas LLC? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.
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