Target Oil & Gas Corp. of Danville is being investigated by state officials after receiving fresh complaints from investors, the Lexington Herald-Leader reported today in a story by business writer Jim Jordan.
The investigation will center on whether the company is selling unregistered securities to investors in its Kentucky and Tennessee drilling operations, Kyle Trimble, enforcement manager for the Kentucky Division of Securities, told the newspaper.
Target is exempt from federal securities registration requirements, Trimble said, but it might not be complying with state law.
Investigators also want to know how Target is using the money from its investors, he said.
One of the complaining investors, Ronald Bateman of Oklahoma City, said he gave Target about $60,000 from 2000 to 2002 for interests in wells the company was drilling.
Except for a $1,200 return on one well, the result was dry holes and wells that never went into production for various reasons, Bateman said yesterday.