Historic failure tries it again – John Wells and SOEC are pushing leases with another paper company. Help research Vortex Energy LLC

According to Landowners in Washington County, this past Saturday John Wells and Southern Ohio Energy Consultants (SOEC) had intended to have a meeting for a “select” group of landowners in Beverly, Ohio. People at the door required landowners to show their invitation and their ID to get in. A large crowd of other landowners who were part of the DUX deal but were not in the “select” group of landowners were turned away until they found another way in. Needless to say it was a tense start to the meeting.

Three representatives of Vortex Energy LLC were introduced. They acknowledged that Vortex was a new company incorporated in Delaware. The lease is for $4,000 / acre and 18%. The business address is 222 Pennbright, Suite 155, Houston, Texas 77090.

The lease signing is scheduled for this Friday – Sunday, July 25 – 27. This is just before landowners commitments to SOEC expire at the end of July. Landowners in Washington County need your help and quickly. Please help research Vortex Energy LLC and post what you find.

Here is a start. According to the Delaware Secretary of State, Vortex Energy LLC was formed one month ago on 6/21/13 and has a Registered Agent – Harvard Business Services.

Further research reveals that Harvard Business Services is a company that provides an inexpensive, online way of creating a Delaware LLC or corporation in very little time. Their website is: https://www.delawareinc.com/?crtag=google&gclid=CIPM5d_ZxrgCFdF...

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Permalink Reply by Eric on July 29, 2013 at 8:41am

We will have to agree to disagree on some issue.  I appreciate Fang and your input but you have both dodged answering my question.  The drum beating drives people away i will let you know that much.  I have read their rules on their website and they seem pretty clear, even payment for services rendered.  Why do you all have such a hang up?  I do not appreciate the comments" Intentional deception" on this site.  unless y'all have proof i suggest you keep them to yourself.   Stick to facts and people will find much more use for what you all post.  Or better yet, sign up with the group and get after Mr.Wells and his poor decisions.  There really is no sense in signing with anyone that is not bondable or able to fullfill an escrow payment.  When your dealing with that amount of cash, it should be mandatory.  I would agrue any attorney worth his salt should know that in this business.  of course this is all hind sight now and that is easy to criticize but I suggest letting that go.  There are some great facts on here and  I for one am appreciative of those facts, but the technicality of those facts remain mute as some of them are simple paperwork and no state in their right mind is going to turn away a business forming and paying taxes to them whether it be texas, delaware or ohio so i would not get hung up on that

Permalink Reply by JS on July 27, 2013 at 9:24pm

It is really important that members of GMS help research Vortex Energy LLC so that all of us, whether Washington County landowners or not, can learn what to watch out for. Please pitch in and help out.

Another GMS member did the research and found out that Vortex Energy LLC is not legally permitted to do business in the state of Texas because it is not registered with the Texas Secretary of State.

As my contribution I decided to research what the registration requirements are for out of state companies in Ohio and to see if Vortex Energy LLC was registered with the Ohio Secretary of State.

A search of the Ohio Secretary of State’s website indicated that a foreign (out of state) company like Vortex Energy LLC, a Delaware LLC, is required to register with the Ohio Secretary of State. From the website:

“Who is required to register with the Ohio Secretary of State?
Any business entity, domestic or foreign, planning to transact business within Ohio, using a name other than their own personal name, must register with this office.  Business entities must file the appropriate formation documents to register their business.”

http://www.sos.state.oh.us/SOS/Businesses/BusinessInformation/Busin... 

A search of the Ohio Secretary of State’s website reveals that there is no registration for Vortex Energy LLC. In fact a search of every company name with the word Vortex in it does not turn up a company name that comes close to matching.

http://www2.sos.state.oh.us/pls/bsqry/f?p=100:2:0::NO:RP::

How could Southern Ohio Energy Consultants and attorney Wells recommend that landowners sign a lease with a company that cannot legally do business in Ohio? Checking on this should have been something easy for an attorney to do.

Permalink Reply by Landowner1 on July 29, 2013 at 10:19am

In a now deleted post Bob asked what the names of the representatives of Vortex Energy LLC were. It took conversations with several landowners who attended the meeting to piece together the information.

As nearly as we can tell the representatives of Vortex Energy LLC were:

Gary Lancaster – President and CEO – we think he is based out of Houston, Texas

Scot Evans – Geologist – from Byesville, Ohio

Bonnie Cunningham – it appears that she is a landman / title searcher, based in Ohio and PA

Please help research these representatives of Vortex and post what ever you find. It will help landowners determine how credible Vortex Energy LLC is.

Permalink Reply by Ron Webb on July 29, 2013 at 12:03pm

Gary Lancaster,Velocity Energy INC Houston Tex.    A lawyer who practices in Gas&Oil

523 N Sam Houston PKwY Suite 175 Houston TX  company has 4 former names maybe its next name is  Vortex Energy ???

Permalink Reply by Seeker on July 30, 2013 at 9:30am

Landowners who attended the Vortex Energy LLC meeting recalled that one of the principles of Vortex was Scot Evans and that he was from Byesville, Ohio. A Google search for “Scot Evans geologist Byesville Ohio” results in:

1.   Linkedin page listing Evans as a self employed geologist http://www.linkedin.com/pub/scot-evans/59/3b1/47a 

2.   Corporationwiki page listing Evans as the only principle in Traeth LLC http://www.corporationwiki.com/Ohio/Byesville/traeth-llc/130298841....  with an address of 275 S 2nd St., Byesville, OH 43723.

3.  Evans’s resume which shows almost all of his experience as a geologist is in coal mining and landfills http://www.postjobfree.com/resume/abgpt1/aspects-coal-mining-geolog... 

 

A search of the Ohio Secretary of State’s website for Traeth results in three listings for companies with the word Traeth in them. All three are associated with Scot Evans and located at the same address (above). Traeth LLC is the only active one. The other two are for companies named Traeth Corp. One is dead and the other is cancelled. http://www2.sos.state.oh.us/pls/bsqry/f?p=100:2:0::NO:RP:: 

A telephone search for Scot Evans in Byesville results in a telephone listing at the above address. http://anywhoyp.yellowpages.com/whitepages?from=AnyWho&fap_term... 

A search by address indicates that 5 people reside at the house where Traeth LLC is located (275 S 2nd St., Byesville, OH 43723). The telephone number for Traeth LLC is also the telephone number listed for Tom Evans at that address. http://anywhoyp.yellowpages.com/whitepages/address?fap_terms[street... 

 

The primary reason this research is necessary is because Scot Evans was held up by Southern Ohio Energy Consultants and attorney Wells as a geologist and a principle in Vortex Energy LLC.

It appears that Scot Evans is not a petroleum geologist and that most of his experience has been in the coal industry. His resume as of 12/27/12 does not list any significant experience with any oil company other than when he worked in Shell’s coal division. He seems to have spent most of his career working for himself in a one person company run from the family house. There is absolutely nothing wrong with working for yourself out of your house. Many people do it.

Ask yourself this. How likely is it that a self employed geologist, apparently without significant oil and gas experience, would be chosen as senior management and an owner of an oil and gas company that has $40 Million to spend on leases in 2013 plus  another $30 Million to spend drilling 3 wells in 2014? How likely is it that such a company would be backed by a large Japanese oil and gas company?

Didn’t attorney wells and Southern Ohio Energy Consultants do any due diligence to check out the principles in Vortex Energy LLC? This research only took a couple of hours. Doesn’t it seem reasonable that before Wells and Southern Ohio Energy Consultants pushed landowners to lease with Vortex and risk their families’ future for generations that they at least researched who the principles of Vortex were?

Permalink Reply by fandango on July 30, 2013 at 3:29pm

Mr. Evans listed as V.P. Bus Development America's Energy LLC (see all the tabs): http://www.amenergyllc.com Located in Pittsburgh, mailing address not listed (yet). Contact phone number for AE put into reverse directory search = no results for that #.

Per PA Dept of State web site https://www.corporations.state.pa.us/corp/soskb/Corp.asp?3071566 America's Energy  LLC created 7/30/12, Active status, registered office address 1024 Garden Place, Glenshaw, PA 15116. No mailing address recorded. No principals listed. (That address appears to be residential but not verified against County records.)

Ms. Cunningham mentioned in GM post here (bottom of page): http://gomarcellusshale.com/group/monroe_county_marcellus/forum/top...

Permalink Reply by JS on July 31, 2013 at 10:00am

Fandango posted a link that indicates that Bonnie Cunningham was associated with Des Wertheimer. That is not a good sign.

For those who are not familiar with Des he is notorious for starting for profit landowner groups, promising deals and never delivering. He was particularly known for coming up with (what turned out to be fake) deals at the last minute when another group announced that they had an offer. To get an idea of what Des was like click on this link:  http://gomarcellusshale.com/group/monroe_county_marcellus/forum/top... 

Come to think of it, given her past relationship with Des, I guess it should be no surprise that Cunningham might be associated with Vortex or with attorney Wells and Southern Ohio Energy Consultants.

Permalink Reply by Roger Perdactor on July 30, 2013 at 12:45pm

I am a abstractor from West Virginia that worked for Dux's broker in eastern washington county running production checks. I worked hand in hand with their on the ground team as well as some of the partners of the company and this is what I can tell you from overheard and direct conversations. I am not signed on a CA and will be willing to comment, but this will be my ONLY comment. 

Dux, is a group of guys, who own successful oil companies, brokerages, law firms, real estate companies in west texas, they are all mom and pops but have large equity in many things. 

From what I understand, these guys had 50% of money to cover all working interest and land costs contingent on a drilling partner on a JV. With so much uncertainty in the area, no operator was capable of the partnership. 

Dux also put a large sum of money as a downpayment to run title and set up a working interest partnership. They gave SOEC a lot of money (none of which that went to the landowners which I think is wrong) and SOEC pocketed it. Dux found a partner to pay for the leases towards the end of the term and and SOEC refused to cooperate and let the leases expire (I was doing production check on this stuff at the time and heard a lot of bitching in their office before they let me go). 

Next I heard SOEC upped the downpayment to put the land under contract to over DOUBLE the original amount, and Dux wanted to pay and SOEC wouldnt do it. Wether Vortex is Dux I do not know. But the individuals behind Dux were legitimate. If Vortex is a shell company, or the same guys behind Dux, I would feel secure if it was them as a landowner. But if its not Dux, then Id be definately worried because either way SOEC is lining their pockets with  money and not giving any to the landowners

IF I WAS A LANDOWNER I WOULD SEEK A NEW ATTORNEY AS AN INDIVIDUAL AND NOT A GROUP, and get downpayments directly made to the landowner and not to the representation. 

Permalink Reply by Seeker on July 30, 2013 at 3:25pm

The third member associated with Vortex Energy LLC was a title searcher / landman, Bonnie Cunningham.

Searches indicate that she is the CEO of Northeast Appalachian Land Service Inc. (NALS) and lists her direct telephone number http://nalsinc.com/Contact_Us.html

Her Linkedin profile lists her full name as Bonita Cunningham. http://www.linkedin.com/pub/bonita-cunningham/18/522/528 One of the people who endorses her for due diligence is Gary L – an oil and gas attorney in Houston – which matches the profile of Gary Lancaster – President and CEO of Vortex Energy LLC.

Corporationwiki lists a NALS office at 124 1/2 E Main St Apt A, Barnesville, OH, 43713 with Bonita Cunningham as the only officer. http://www.corporationwiki.com/Ohio/Barnesville/bonita-d-cunningham...

Dunn and Bradstreet confirms that information. In addition it shows that there is only one employee and the telephone number is the same cell phone number listed by NALS as Bonnie Cunningham’s direct number in PA. http://www.dandb.com/businessdirectory/northeastappalachianlandserv...

The Bizapedia.com page for NALS in West Virginia lists Bonita Cunningham as CEO and only Director with a principle address in St. Clairsville (at what appears to be her home) as well as the mailing address in Barnesville (above) http://www.bizapedia.com/wv/NORTHEAST-APPALACHIAN-LAND-SERVICE-INC.... 

Attorney Wells and Southern Ohio Energy Consultants sought to assure landowners that (unlike DUX Petroleum) Vortex Energy LLC was a legitimate oil and gas company by claiming that Vortex would put $1 Million in escrow to guarantee the title searches.

First off, that is absurd. What happens if Vortex fails to do the title searches? Do the landowners get the money? Not unless Attorney Wells negotiated a rock solid contract obligating Vortex to do the searches or forfeit the $1Million. How likely do you think that is?

Second, given that Bonnie Cunningham (a one person firm and part of Vortex) would be doing the title searches, how would anyone prove Vortex did not do them? $1 Million to do the searches = some very expensive searches.

Third, Vortex would be paying itself to do the searches, in effect taking the money from one pocket and putting it in the other.

All of this is publicly available information, information that Attorney Wells would have discovered had he done his due diligence.

Permalink Reply by Deer Hunter Bob on July 30, 2013 at 4:57pm

Does anyone ever think that Wells/SOEC finally got "smart" and thought "since I'm shopping this landowner group and only making 1%, why can't I get some other people to create an LLC and get the group under contract and controlled by the LLC?  Then once we find a real deal the LLC can assign those leases (not funded nor title ran) to that real company for a spread and maybe an override on the royalty?"

He's doing the exact same job; attending expos and shopping it and just when SOEC thinks they have real interest here comes DUX/Vortex whoever to gain control of the landowners... This Vortex thing just so happens just before SOEC's landowner commitment expires. 

The 1% fee is pennies compared to a $500/acre and 2% royalty spread...

Vortex is a joke.  This buys more time to find an offer and would result in a lot more money for the principles of Vortex/SOEC and whoever else is involved. 

 

This has happened many times, especially in Ohio a few years back...

I could have an LLC in an hour if I wanted...

Permalink Reply by Samuel J. Orr on July 30, 2013 at 6:32pm

Deer Hunter Bob: You are 100% correct! The reason WELLS and SOEC charge such small fees to the landowners  (1% of bonus money) is because the BIG MONEY that WELLS and SOEC collect occurs when the leases are flipped  and WELLS and SOEC split with VORTEX the monies that they have in effect STOLEN from the landowners. These monies may be a royalty override of 2 to 7% plus whatever dollars per acre  above $ 4000 / acre that they obtain from the real O&G Company  to  whom VORTEX ultimately assigns the leases. I made essentially the same observations  about DUX that you made about  VORTEX in multiple posts to the DUX threads. I still believe that someone should print out the DUX threads and the VORTEX thread in their entirety and get them to an investigative reporter at one or more of the larger Ohio newspapers and / or to some Ohio TV stations..

:

 

Permalink Reply by WLW on July 31, 2013 at 2:23pm

Hum?

One would tend to wonder/imagine/be lead to believe, that the whole DUX/VORTEX issue being pushed in this thread is only to divert everyone in the wrong direction?

Could it be that????? The motivation is something totally different all together?

Research, research, research???

 

 

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