A longtime geologist turned investment adviser who operated Norstra Energy Inc., an oil and gas company in Southlake, Texas, recently was charged with allegedly making false and misleading statements about Norstra’s oil reserves, drilling plans and business prospects.
Beginning in 2013, Glen Landry, who had almost 40 years of experience in geology at that time, started serving as Norstra’s president and CEO. On behalf of the company, he issued a reserve report that was publicly disseminated and stated that the company’s leased sections in the Bakken Shale in Montana contained “between 9.5 and 16.7 million barrels” of “original oil in place,” according to the U.S. Securities and Exchange Commission. However, the SEC complaint states that Landry and Norstra failed to disclose the difference between “recoverable oil” and “original oil in place.” The complaint points out that the report did not explain “that the actual barrels of oil Norstra could recover would be significantly lower than the 9.5 to 16.7 million barrels of oil that the Reserve Report estimated.”
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