Soreide Law Group is filing claims on behalf of investors who invested in the following:
Vista Drilling Program 2011-1
Vista Drilling Program 2012
Vista Drilling Program 2013-2
Attorney, Lars Soreide, Esq., has been filing claims on behalf of clients who invested in various Vista Drilling programs against the brokerage firms that failed to disclose material facts regarding the investment to their clients. These facts, according to Soreide Law Group, include:
- The program is allowed to use 20% of the proceeds to drill exploratory wells;
- Upfront fees are approximately 10% of investors’ capital;
- The sponsor will contribute about 20% of total capital, in form of cash or leases. Leases will be acquired from Vista affiliates at a cost determined by Vista;
- Investors are only entitled 58% - 70% of net revenue;
- The sponsor charges 12% mark-ups on drilling costs;
- There is no active secondary market for the partnership interests;
- Vista Drilling Programs are subject to strict redemption restrictions: up to an aggregate of 10% of the shares outstanding may be redeemed each year. Redemption price will be determined by Vista;
- As of June 30, 2013, 71% of Vista Drilling Programs operated for at least 10 years had not yet returned investors’ capital.
Given these dire red flags, it is apparent to Soreide Law Group that some investors may have not been made fully aware of all the risks. Currently as of March 2018 Vista Drilling has stopped paying any distribution on the aforementioned programs may encourage investors to take a second look at their investment and ask themselves if their broker who was paid a 7% up front commission really had your best interest in mind in selecting this investment.
Soreide Law Group represents investors nationwide on a contingency fee basis against stock brokers and brokerage firms through the FINRA forum. If you invested into any Vista Drilling program call Soreide Law Group at (888) 760-6552 or visit https://www.SecuritiesLawyer.com.