Investment scams in Oklahoma increase with rising price of oil

Monday, August 29th 2005, 5:52 am
By: News On 6

OKLAHOMA CITY (AP) -- Surging oil and natural gas prices are increasing the number of investment scams in Oklahoma's oil patch.

Oklahoma Securities Deputy Administrator Melanie Hall says her office has 12 active oil and gas cases. That amounts to 10 percent to 15 percent of all its ongoing investigations.

Oklahoma City mineral law attorney Tim Dowd says people with little knowledge of the oil and gas industry should not invest in specific wells.

Dowd says they'd be better off buying stock in an oil and gas company that's based on the drilling of numerous wells, not just a hit-or-miss on one well.

He says those who invest in individual sites should give money only with reputable companies that have been in business for many years.