Swan Energy, Inc Brandon Davis, CEO Swan Energy, IncHeartland Energy Development CorpBedrock Energy Development, Inc Swan Energy, Inc Oil & gas drilling Joint Ventures Houston Texas
In July 2015 I was contacted by Will Wallace, sales representative of Swan Energy, Inc with a sales pitch of fantastic returns through Oil & Gas drilling Joint Ventures. He exaggerated the success of prior drilling operations and minimized the risk by stateing that they have drilled over 1000 wells with only two dry holes. The pitch was to invest $67,000 for a single "Unit" in the JV project called TEXHOMA that would drill two wells, one in Oklahoma and one in Texas. He also mislead me on the timing of the drilling saying that they would begin drilling in "a couple of weeks" and if I didn't jump in now, I would miss the opportunity once they start drilling. So, I spent the $67,000 and joined the JV. After that I experienced a series of miscommunications and headfakes as to the status of the project. They sat on my investment and of all the other JV Partners and did not begin to drill until January 2016 all the while holding our money for their own use.
The results of the first well were, surprise, surprise... a DRY HOLE. Then they promised that the second well would be a better result. We waiting another 8 months for that well to be drilled and surprise, surprise... another DRY HOLE! Each JV Partner lost 100% of their capital investment which supposedly was only their third and fourth dry hole in their history.
I have subsequently done some research and discovered that of all the wells they have drilled, only one has made enough money to return the capital investment plus a return to the JV Partners. And they have many more dry holes than they advertise.
For all you potential JV Partners out there, when you get a call from Swan Energy, run as fast as you can in the opposite direction. DO NOT invest in this fly-by-night operation.
In fact, just today I received a call from their CEO, Brandon Davis unapologetic asking me why I am upset. When I explained that I'm upset because of the failure of the TEXHOMA JV Partnership to return even one single dollar to the venture, he said "I don't know why you're upset, that's the nature of the business and these things happen". When I tried to explain my dissatisfaction with the overall timing and miscommunications and their holding our money this whole time, he actually told me to "shut up".
AVOID Swan Energy at all costs!!!
2 Updates & Rebuttals
Lester
Conifer,Colorado,
United States
Worked as a trucker in Colorado for Swan
#3REBUTTAL Owner of company
Mon, April 09, 2018
They used me for transport in Colorado and were very prompt in paying me and have used my company sever time. No complaints about swan energy. SSn (((REDACTED))), Drivers Lisence (((REDACTED))).
Luther
Conifer,Colorado,
USA
Joint Ventures
#3Consumer Comment
Thu, October 19, 2017
Just wanted to make a comment on the above report. Joint Ventures in oil and gas have been offered since to 1960's. Partners who enter into a Joint Venture know the risks. Dry holes are common in the oil and gas business and people that don't qualify financially should never join as a partner. The odds of finding a producing well is around 3 out of 10 wells drilled. Nobody can predict for certain that a well will be a producing well. Even when a well is a producing well the revenue comes over a period of time. The oil and gas business is a wealthy persons venture. That is the reason that partners are qualified before being allowed to enter into a Joint Venture. There are also tax benefits for losses in a dry hole. A lot of wealthy people are always searching for tax benefits. Geology is an educated guess and nothing else. The person who wrote the above report doesn't seem to understand the oil and gas business and probably wasn't qualified financially to enter into a Joint Venture. Instead of attacking the company he should look more into his decision to make the investment that he evidently couldn't afford. He made the decision. He wrote the check. He took the risk. All the company did was offer up a partnership in a Joint Venture and the guy took the offer. No fraud. No scam. Just two typical dry holes and everyone took the loss.