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Gulf Coast Western Complaints & Reviews - Total fraud and scam

Gulf Coast Western Contacts & Informations

Gulf Coast Western

Posted: 2011-02-27 by    jbbbj

Total fraud and scam

Complaint Rating:  39 % with 18 votes
Contact information:
Gulf Coast Western
United States
Gulf Coast Western is committed to stringent environmental standards through the use of advanced drilling techniques, tools and procedures to efficiently and safely develop our oil and natural gas resources. This commitment has been an emphasis of the company since its establishment in 1970, and we are justifiably proud of our record in public safety and environmental quality.
Gulf Coast Western relies on contractors and operators that are equally invested in innovative drilling programs and initiatives that use advanced technologies and equipment that work together to produce fewer emissions, create a minimal impact on the environment and lead to enhanced conservation of valuable energy resources. In addition, Gulf Coast Western ensures that their contractors provide frequent training and education to assure that the safest and most advanced environmentally-sensitive techniques in exploration, production, waste management, transportation and storage are strictly followed.
The company focuses its operations in the Gulf Coast region of the United States as well as the Texas Permian Basin, under the direction of President and CEO Matthew Fleeger. Named to this leadership position in 2007, Mr. Fleeger is highly experienced in multiple areas of oil and gas operations and has been recognized as one of the top executives in the United States. He has personally placed environmental safeguards as one of the top mandates on his management agenda, to complement the efficient and profitable operations of Gulf Coast Western.
Comments United States Business & Finances
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 6th of Feb, 2012 by   Bill81 0 Votes
I entered into a partnership program with Gulf Coast Western in June 2011, this partnership include two wells, the first turned out to be a dry hole despite the geological studies indicating it had high potential. But my real complaint is when entering into the program, the expectation the company set was that cash would begin flowing back to me in third quarter last year, worst case, fourth quarter last year. As of this date, 2/5/2012, they have not even started drilling the second well, and won't for weeks to come, having heard that before, I am sceptical. I do not view GCW as a fraud at this time, I just view them providing optimistic projections, and dates which they have failed to meet. They need to clean up their act. Depending upon the outcome of the second well, I may change my mind, and consider them both dishonest, and a fraud.
 17th of Aug, 2012 by   Bill81 +1 Votes
An Update:

The second one is producing Oil but at a very slow rate. The original literature suggested a flow rate at max ~9 x what the flow rate is actually running in Barrels of Oil per day. I felt it would be a good investment at the midpoint of their literature on the second well. In August, we are barely at 12 % of the top of their projection. I do not believe there is any case for fraud, but their estimates are not to be trusted, and their timing is not to be trusted. It took about a year before the second well started to produce. At this rate, it will take 9 years to get my original investment back and another 9 years to double my money, a total of 18 years IF the well keeps producing. I could do much better in other invetments. Knowing what I know now, I would not participate ever again with Gulf Coast Western, nor can I recommend them. They always have a story, but the results at this time are just not acceptable to me.

Bill
 25th of Jun, 2013 by   dialdave 0 Votes
what is the name of the project that they have not oil or has not been drilled? are you making money with Gulf Coast Western?

Dave
 2nd of Aug, 2013 by   Francocst +1 Votes
I agree with Bil. Their projections are overly optimistic and once they get an oil producing well they always seem to have problems and the production diminishes. I do have an oil producing well with them but at the rate it is producing I will never get my investment back. I will never invest with them again.
 21st of Mar, 2014 by   d. michael +2 Votes
Avoid investing with Gulf Coast Western. They are nice until they get your money and provide poor communication after they have what they want.
 24th of Apr, 2014 by   benny63 +1 Votes
Worst investment decision I have made...ever! I invested in 3 projects, been involved over 2 years or so and one of them, in spite of being "completed" right away, is yet to produce a dime. Always something "pending". On one of the others, it involved several "producing" wells, two of which we plugged and abandoned shortly after the money was exchanged. The other two new wells that were part of the deal have been a total flop. I will never even recover my investment on that project. The 3rd one, again it was "completed" right away but measly production started almost a year later at a fraction of the rate advertised and after 2-3 months, it ran into dwindling production rates and is not shut in for some reason ... like stated above, I don't use the word scam lightly but it certainly has to be considered in the context of this investment. I take personal blame for not doing adequate diligence but at some point someone is going to not take the sitting down. There out on all of this is the statement "drilling investments involve significant risk". Their performance goes beyond this and some.
 17th of Jun, 2014 by   benny63 0 Votes
I think this company needs to be investigated. Something doesn't smell good here.
 26th of Jul, 2014 by   Thinkin 0 Votes
Thank you for your posts. They just sent me one of there investment proposals. ... I immediately felt it to be way too optimistic ! ... After further research can not find a single well of theirs with any real consistent production that pays to invest in ! I think there proposals have trouble when they use another companies wells that are producing to project there wells future production that are very far apart ... clue theirs generally a reason they don't at this point have anything they can point to in there well proposals that is theirs, that is producing at there projections or even close !... This is a giant red flag folks! ... After two years sitting back, and them throwing proposals at me, I would say this is a definite scam !!! It meets the definition well ! No pun intended . They will never see my money ! You who have lost your money should file a complaint with the Attorney general of your state and the State of Texas . You need to file complaint with FBI as well ! Good luck getting these guy put in prison ! Look forward to seeing the story on CNBC crimes of crooks, scams, and criminals !


Fred
 28th of Jul, 2014 by   benny63 +1 Votes
I don't know all I probably should know about the business and personally am responsible for a lack of DD. But, I must say, I am much smarter than I was a couple of years ago. With that said, I have several investments with these guys. The process seems to be as follows. The project will be finished though the completion phase, which insures the maximum investment. Once it is completed, there seems to be one thing or another to get it into "production". You might realize a few bucks for awhile but at a level much lower than advertised. After a couple of months, "issues" start showing up that have to be addressed and typically require more investment or just walk away from what you have in the project. This process may drag out for months, or maybe even over a year. This gradually becomes the MO. You finally realize you have gotten so much invested in a non-producing or very marginally producing well that you are trapped. At some point, you realize that you will never "make" any money and probably will not even get your original investment back but unless you want to walk away from all you have invested, you have to keep playing the game. What a gig! Invest with caution here and make sure you have plenty of $$ in reserve to stay in the game.
 30th of Jul, 2014 by   B.A. Day +2 Votes
As I am reading through the above comments I to have invested well into six digits with GCW. Shame on me! I do agree, there is always a smoking mirror with every project I'm involved in. Jack Nelson was our first "salesman". Barabay project was completed and we were told we had a nice producing well to build your confidence to reinvest with other projects. With a check coming every three months or so for maybe $80 or a statement saying we "owe". The math doesn't add up, does it!?? So I've got three words of advice...one is do your homework on GCW. Two is if you do invest do one project at a time and see it through. It doesn't hurt quite so much if you lose. Three, for those who are all ready invested don't give GCW let's pool our money and work towards putting an end to these crooks! We've had lawyers look at their wording and they are well protected as all good scam artist should be!
 31st of Jul, 2014 by   benny63 +1 Votes
Just my opinion here but from listening in on various conference calls, it seems GCW preys on the first time investors, those with little experience, or those that are widows or widowers that have a little money for speculation. I once asked if I could have contact information for the other investors in a particular project and, instead of getting a logical yes or no, i got a very hostile response like "why do you want that?" I explained that i just wanted to improve my exposure to such investment by interacting with other investors. to say the least I did not get the list and was told that this information was confidential, in spite of the fact that investors give their names during the verbal vote tally during the CC. In fact, I suspect that if there were some verbal continuity between the various investors on a particular, and apparently typical project, the likelihood of a class action suit would be much more likely. From reading the various posts about other GCW projects, it seems eerily like the MO is the same on all, or most...get the investor hooked, then milk them with minimal encouraging information or positive prognosis.
 4th of Sep, 2014 by   Yombie 0 Votes
Received a cold call from Mr Steve Ziemke, Senior Vice President. He was trying to get me to invest in the Buda Horizontal #2 Joint Venture. I told him I was interested in learning more. He sent me a very informative package containing the details about the product. He called back after a day or so to answer any questions I may have. I told him I was looking into the company and the drilling that was going on with the Buda #1. He said he sent me a package with "all the information I needed." "It is all in the package." I asked a few questions and told him I need to talk with a few other people. He gave me a reference to speak with out of AZ. I spoke with the gentleman about his involvement with GCW and found him to be very informative. I read the ENTIRE package that explained in detail how the investment worked. The first three pages are ENTIRELY IN BOLD PRINT. EXPLAINING THE RISK INVOLVED. YOU CANNOT SELL YOUR SHARE, IT COULD BE A DRY HOLE AND NO INCOME PRODUCED. YOU MAY BE REQUIRED TO FUND THE WELL MORE THAN YOUR INTIAL INVESTMENT BEFORE KNOWING IF ANY INCOME WILL BE PRODUCED DUE TO UNCONTROLLABLE CIRCUMSTANCES. I called and left a message on Mr. Ziemkie's voice mail, explaining how I would not be investing with the Joint Venture because of the risk was beyond my tolerance. Mr. Ziemke called me back as to not end our relationship with a voice mail. I was Shocked and demoralized at the end of the call. Mr. Ziemke was explaining that the last well that was just drilled was going to make the investors 200 percent on their investment (based on 8 days of data). He asked me if that kind of return is not good enough than what do you expect in the stock market. He said something along the lines of" if your not man enough to risk 40, 000 dollars, than he doesn't want to do business with me either". I thought he went against every investment standard I have known. He was telling me how much the tax benefit was going to be. That this new well was going to produce because of the activity around it. How all the big players are involve with this find. I think this may be a good company with a bad actor involved. But, if he made it all the way to Senior Vp. then maybe the entire organization is run by this kind of consumer treatment. I cannot put my money at this level of risk... and I am talked down to and less of a man? The way he was talking about the other well and how dumb it would be not to be involved (as this one will be producing similarly).
 10th of Sep, 2014 by   John David Harrison +2 Votes
They now have a well (Buda Horizontal #1) that may be producing far above their expectations. I suspect it may be the first well they ever had that has good results. On the other hand they have a stunningly bad reputation. They now have an opportunity to do some repair to their reputation. The usual scam would be to suddenly develop a strange technical problem that requires more money from the partners to fix. As they have not had a history with any success in drilling for oil, their profits come from collecting funds from unknowing investors. I think that they have major challenges that they are likely to be ignoring. There are at least two large legal firms now working in the Internet and phone solicitation market. There are blogs like this that are informing potential investors of the downside of GCW. The Texas Rail Road commission is powerful and well run organization that could take action if enough complaints are generated. (I live in NJ, am a lifelong liberal Democrat and it is good to see that the State of Texas has some programs that are running well and protecting people.) The Buda 1 could save their company, but their attitude is likely to ignore this strange new situation (a well that will return substantial profits to investors) and fall back on their old highly profitable ways of milking investors for bogus issues. Time will tell.
 10th of Sep, 2014 by   benny63 0 Votes
If the production on this well continues for any reasonable time, you can expect the PR will be exploited to the max on other potential projects. I have contacted the RR Commission (I live in TX and a life-long conservative (BTW - and not relevant to this discussion but there is hope that you will ultimately see the error in your ways - LOL)) to see if there are any complaints on file for such actions and also the State Atty. General. I have not been able to find any but this might be due to some creative legal protection in their contract wording. These guys are not new to the game. To anyone involved in the Buda well that is doing well, congratulations and I hope your success continues. meanwhile i just hope to someday approach recovering my apparently on-going investment(s) - but I doubt
it!

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