Texas Order: Oil and Gas Promoter Offers Repayment to Investors

Sep 25

Jason A. Gilbert, the CEO of a New York-based energy company who last year was ordered to stop an offering of unregistered investments in a multi-million-dollar oil and gas project, has made a full rescission offer to investors.

Texas Securities Commissioner Travis J. Iles last week entered an Agreed Cease and Desist Order with Gilbert, the CEO of SourceRock Energy and affiliated companies. As part of the order Gilbert offered repayment to all investors, including Texas residents, who invested in the Phoenix Prospect, an oil and gas project in Sumner County, Kansas.

The agreed order settled a previous administrative case in which the Securities Commissioner alleged that Gilbert and SourceRock said they planned to raise $4.4 million for the Phoenix Prospect. That total was to include $1 million to be paid to one of Gilbert's companies, SourceRock Energy Partners LP, as a management fee.

Gilbert and the SourceRock companies also agreed to permanently cease offering or selling any  securities in Texas. Gilbert is also known as J.A. Gilbert.

Neither Gilbert nor the SourceRock companies have ever been registered to sell securities in Texas and their securities have never been registered for sale in Texas.