CALGARY, Alberta – Bendovus Energy, Canada’s largest oil and gas operator, is facing numerous charges after a weekend sting by the Canadian Oil & Gas Investigations Commision. The energy giant faces numerous securities and trading charges ranging from Fraudulent Reserves Reporting to Intentional Deception Causing Grief.
The charges come after a 3-year undercover operation by C.O.G.I.C. after rumours of unethical practices emerged in 2010. Bendovus has apparently been faking the data and information from almost all of their drilled wells in order it pump land prices and royalties in their freehold jurisdictions. In effect, the Calgary-based energy giant has duped smaller operators into thinking the lands were worth more than they actually were.
Jellie Donought. Serious.
We have been investigating Bendovus for 3 years now, and we have definitive proof that there is massive deception going on. As far as we have found, there has not been a well drilled in over 5 years. They drill to a shallow depth, set a bit of surface casing, put a wellhead on it and spin it round and round. Samples, gas data, logging data, and production data are simply forged by a team of data entry folks in a remote data centre in JamJar, China – Jellie Donought, Senior Advisor with C.O.G.I.C.
The scam Bendovus allegedly ran for nearly 5 years revolved around land sales and royalties. Once they had falsified enough data to inflate their reserves, they could sell land positions for ridiculous prices, and charge massive royalties on their freehold regions in central Alberta. Of course this worked as they have always been seen as a leader in exploration and development.
Most mid-size and junior operators would jump at the chance to take bite of such lucrative developments. Rhoda Freiggetti, Staff Geologist with Robinemblynd Resources spoke to 2P News about her company’s recent acquisition.
Rhoda Freiggetti staying positive despite the losses
We dealt for months on a property near Vauxhall that showed great potential. 160 Million barrels of oil they said, and that was proven, not probable. 300 million probable. So we went in and bought them out, 12,000 BOE of existing production and 7 sections of prime development potential. Then we discovered the 34 wells we bought only went maybe 120m deep, and they were not even tied in. The facilities were just buildings in the middle of a field with some pipe sticking out. But due to a confidentiality waiver threatening reposession of the property if we disclosed details, we had to just swallow our pride and accept the scam. But this investigation has allowed us to speak out. – Rhoda Freiggetti, P.Eng.
While there are several acquisition and divestiture deals pending with Bendovus, all have been halted in the wake of this investigation, and if charges are followed by further legal action, it could spell the end of an era for Bendovus, the Oil Behemoth of the North.
