High Court winds up £3m oil investment scam

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The High Court has wound up two companies which took £3.1m from UK investors in an oil well investment scam.

New Horizon Energy Limited and New Horizon Energy LLC cold called UK investors offering a percentage share ownership of oil wells in the US.

An investigation by the Insolvency Service found investors were promised large returns to be paid monthly, based on the volume of oil produced from each well.

They were told that the wells were already producing oil at a substantial rate. However, in reality the wells had not been drilled.

Investors had been chasing the companies for information about their investment and were given updates detailing delays and problems with a constant reassurance that the wells would be “producing oil shortly”.

The investigation was unable to identify that any of the funds had been invested as promised.

The Insolvency Service says it is not yet known how many consumers invested in the scheme.

Insolvency Service chief investigator David Hill says: “Businesses such as these must be brought to an end to protect investors and rid the business environment of companies that operate with dishonesty.”