Cannon Operating

Cannon Operating is lazy and irresponsible

I am an investor and always keep looking for better opportunities. When I saw the website of Cannon Operating, I was excited to see the projects they offer to invest into. However, I never knew that they are so difficult to deal with.

I contacted them and someone from their office was connected to me for discussing the projects. He provided me brief information on the options available to me for investing in. So, I provided him few checklist and asked him to email me the detailed information related to the choices. He said he would be doing that in an hour’s time.

However, I did not receive any email in the entire day. The next day went by and still no email. I also left hope and decided not to work with the team which is not responsible enough to reply on time. After a week, I received an email with details of the investment options I never opted for.

I went crazy and called the direct number from the signature. He was the same guy. I asked him why he had sent me information that was not of any interest to me. He did not even seem concerned and said that he would send the information right away.

I told him that if he delays the email like he did the last time, I would not talk any further. This time, I received the email right after he disconnected the call. Although the project was interesting, I wanted to clear few points before proceeding and replied to the email with some questions.

I waited for a day and the email was never received. Till this date, I have not received any information and it has been more than a week. I believe that this company does not care about its investors. They have enough, and they do not need any more investments.

I have worked with companies and have seen the worst cases. People entertain you and once the payment is made or the work is completed, they may not give you the importance that they used to. But, in this case, it was way beyond imagination. A company, not answering new clients is very unlikely.

Are they even serious about their work or are they just trying to bring themselves in notice by putting imaginary projects. That’s the only reason I can think of for not providing the right details and then ignoring my email.

If they had the answers, why they kept it limited to themselves. I have no words to describe their arrogance which I felt in the way they did not bother about informing me about the projects and kept me waiting and waiting.

I have dealt with so many other companies that may not have lucrative deals but win their investors with their attitude to serve. This was not the case with this company. I am never ever going to contact them for any investments in future, even if they offer the best investment terms.

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2 reviews on Cannon Operating

  1. Not good at what they do at best - dishonest at worst

    I was contacted by Cannon Operating in the fall of 2016. Mike Bowen was the salesperson that I dealt with. Mike was very helpful in explaining the project. He was very thorough and used a bunch of jargon that sounded great, but that quite honestly – was over my head. Not knowing Cannon Operating I felt I was doing my due diligence by requesting to speak with past investors. I was given the phone number of two previous investors. They both seemed to be complimentary of Cannon Operating. Maybe to the point of excess. I once heard someone say that even bad men can get a couple people to say nice things about them. So I cant say if these were good contacts or not, I dont know.

    I was told by Mike that all of the fieldwork and surveys had already been done on the two wells from previous projects in that same exact area that I would be investing in up in Oklahoma. I was told that there had been so many wells in that area from other projects, that this was an extremely safe and predictable project. Mike, I think by law, had to give the obligatory disclosure of “but there is always risk”, which he did. However, the disclosure was more like “well, there are never 100% guarantees in oil drilling…….but if there was anything like a sure bet – this project is it.”

    I asked about when the project would be completed and if there was oil, when could I safely expect a revenue check to be dispersed. I was told point blank by Mike, that everything was already prepped and that it would be no later than February of 2017.

    I understood that oil drilling had inherent risk. But Mike kept telling me that this was not “wildcatting”. He kept telling me that this was not exploratory drilling. It was very different from deep water drilling or other long shot drilling. He said that this well would be very shallow, and there was so much good information already on this area from geologic surveys etc. that this was as safe an investment as oil drilling has. You get it. I very much wish Mike would have just been honest – it was a risk. He didnt know anymore than anyone else if oil was going to be in these two wells. If you are going to rely on oil experts to tell you the relative risks of certain wells over another, then at the very least I would suggest you find better “oil experts”. They predicted this was as safe as a project as there was out there – spoiler alert* – there wasnt a drop of oil in either of the two wells. But that is not even the part I want people to be aware of. Because like I said before – oil drilling by its very nature is risky. That part is known and is acceptable. But Cannon Operating has a more fundamental flaw in my opinion. They were shady with their communications the entire time.

    I have already shared that Mike Bowen assured me that I could expect a check in the mail by February of 2017. Well, February 2017 came and went. I started sending emails asking for updates. I would not hear back for days and sometimes weeks. It was puzzling because before I sent my money off, Mike had exceptional follow up. The second I had a question about investing in the project I would get a response. But once the check was sent off – it was sparse communication.

    At any rate, it was now April and even May and still there was no oil check. When I would ask why it was delayed already by 3 months, the only response I would ever get was “it’s been rainy”. Really? Raining for 3 months? I was watching the weather by this time. There were weeks at a time it wasn’t raining in the area of Oklahoma that these wells were in. Yes, it had been a rainy spring – surprise? I think it rains every spring, right? Well, the delays kept going. May, June, July, August, September, October……Yep. It was October 2017 and there was still absolutely no sign of whether there was going to be oil. Why? Because they still hadnt done their job. And if you were wondering about the communication, it was still non existent. Every now and then I would describe my frustration in email about not getting any meaningful updates of what was delaying the project so much. At this point, I received a few phone calls from William, the owner. He always seemed very gracious, but when I actually asked for details he was extremely elusive. He would use a bunch of oil drilling jargon, I felt was mostly to confuse me and help me be at peace with why the project was getting closer to a year overdue. Apparently it worked on me. Still the only excuse he ever gave about the delays was “well, we had a rainy spring” – mind you this was in October by this time.

    Well, time kept ticking away. Now, there was another capital call. So the drilling was now more expensive than they had predicted and in order for everybody to keep the shares they had already invested in – they would have to fork over thousands of dollars more. This was before we would even know if there was any oil. So in other words – they were poor in their estimating the costs and now for us to even keep the shares we had already spent tens of thousands of dollars on – we would have to fork over more money – all with the same risks.

    That is when I got another call from William. I was very frustrated that the project was now more than a year overdue. They still could not tell us if there was any greater chance of oil or not, and to add to that, if we didnt invest even more money – then all of our shares would be lost. Total loss. Think of that. I had spent $75,000, waited a full year, they still didnt know if there was any oil, and now to keep going and continue in the investment I was being required to pay an additional $6750. If I didn’t then I would lose the entire $75,000. But – William shared with me a “great opportunity”. William shared with me that any of the other investors who couldn’t/wouldn’t put in the extra capital to keep going would lose their shares. Sad for them, but it could be a huge win for me. He said that all I would need to do to pick up those shares was to pay the amount to cover their additional capital call. Essentially, once those investors couldn’t pay – I could pick up their entire share for “pennies on the dollar”. Well, William was telling me that “the rain” had set things back (which was still ridiculous that he was claiming rain delayed him 10 months) but that if I didn’t pay the additional money to pick up other investors shares, that he was going to. He again assured me that after all the preliminary holes they had drilled to this point, and from all the data the geologist had analyzed he was confident in the well being profitable.

    By this point, they had sent out a bunch of drilling logs that showed data. Totally foreign to me, and despite my efforts to get clarification on this data, I was essentially told “it’s complicated, but its all good news”. I was even forwarded an apparent email from the geologist that referenced cracking champagne bottles because it was such a win. Ive already given the spoiler alert, but these were the things that kept me as a novice investor confident in what was going on despite my hesitations and frustrations. So – I went ahead and paid an additional $20,000 to cover other investors’ capital call and for that I picked up an additional 7% of the wells. Essentially I purchased an additional 7% of the a total loss.

    Well, this final check was mailed off in February of 2017. Yep, 1 year form the time I was told to expect a check in the mail. And at this point Cannon Operating was still not even far enough into the project to tell us investors if there was any oil.

    Well, very quickly after sending that check off, we were informed with a 2 paragraph email “there is no commercial oil in the 1st well. We have decided to shut it up”. Doh! That was fast. We waited a year to get even more money from investors and everything “looked great” and we were going to crack champagne bottles and almost overnight we knew there was no oil in the 1st of two wells.

    Well, to make a long story short, it took an additional 4 months (From February 2018 until June 11, 2018) to finally tell us that the 2nd well was equally dry.

    So long story short – Cannon Operating has probably had some successful wells. Mike and William were certainly cordial. They both sounded very knowledgeable. They alternated between great communication and very poor communication. Outside of a bunch of oil drilling jargon and vocabulary there was never any real communication about what the heck was actually delaying things or going on.

    The main issues I had were:
    1. The disclosure on the front end was minimized completely. I was all but assured that this venture was a lock. I was told there was a difference in oil drilling risks, and this one that I was investing in was almost a sure thing. So either they were dishonest or they were plumb no good at what they do by mitigating risks and taking calculated risks. Both of those will disqualify me from trying any other deals with Cannon Operating.
    2. The communication was extremely good when it came time to get my money and extremely poor when I was asking for meaningful updates
    3. The project came in 20 months late. That is real time. I could have been making interest on the money the entire time. I was assured I would see money in February of 2017 and I was told in June of 2018 that there was no oil. That is more than a little rain, which to this day is still the absolute only excuse I have ever been given for the delays.
    4. They were either dishonest or just plain not good at estimating drilling expenses. So, just understand that they can tell you the investment is $75,000 but then they can come back a year later and tell you that you need to pay another $6750 or you will lose the entire interest that you purchased for $75,000. Very risky. They could have said any price was still needed. And in the end, that was just extra money that they were requiring to even find out if there was oil.
    5. In the end – the project was 100% loss. Need I say more?

    1. Official Reply

      David,

      Several of your comments are inaccurate and paint a different portrait than what the actual truth is. It may be best to dissect your email for our response for a more factual representation of our communication so we don’t miss anything.

      “I was contacted by Cannon Operating in the fall of 2016.”

      The first comment you made is inaccurate. You contacted Cannon and requested investment information.

      “I was given the phone number of two previous investors. They both seemed to be complimentary of Cannon Operating. Maybe to the point of excess.”

      One of the investors you spoke with is a reserve engineer for a large publicly traded oil company. He reviewed the prospect and invested before speaking with you, he is a first-time investor with me. He is in the business and was provided the same information you were and felt confident enough to share his opinion with you. He purchased additional interest as well, that decision was based on the Composite Log (a tool used to gather crucial information from the potentially productive interval in the well bore). The comment you made about “cracking champagne bottles” was not our comment, it was his. We showed you that because it was his feelings based on his interpretation of the Composite Log. Log interpretation is a critical part of his job. It helps him determine the over-all value of the wells they drill, he performs it on a very high level daily. Determining if a well is commercially productive is a process, this is one of the most critical single pieces of information to try to make that determination. Ultimately, it determines if a well has the ability to produce in potentially commercial quantities. For him to review the Composite Log independently and concur what my Geologists opinion was, I felt was additional conformation.

      “there wasn’t a drop of oil in either of the two wells.”

      First well, Gaffney 1-7 of the two well drilling program you invested in.

      The first three days of swabbing, “oil field jargon” (pulling the oil to the surface to gage preliminary potential production numbers) calculated each day to 50 to 75 BBLS of oil per day, as the Composite Log suggested that there was oil in the zone. All of which was provided to you in the form of completion updates from the field and explained to you in depth, as we do all participants that express they don’t understand them. factual, provable, documented, unlike your comment.

      “I was told by Mike that all of the fieldwork and surveys had already been done on the two wells from previous projects in that same exact area that I would be investing in up in Oklahoma. I was told that there had been so many wells in that area from other projects,”

      You were not only told of the previous wells, but showed them in the information provided to you, and their proximity to the well locations you invested in. Along with their production numbers, volume of oil sales to Sunoco, dollar amounts payed to us by Sunoco, and production history. We provide all operation documents, surveys, drilling permits, drilling reports, real-time drilling footage, geology, logs, completion recommendations etc.….This is SOP for every well. We also provide pictures of day to day operations as they happen on location. We provided you with log-in credentials to our investor portal immediately when your paper work is approved to view the previous and future updates at your convenience. All field work performed prior to you participating was viewable and verifiable in that portal. Your accusations that the work you were told was done, was not done would have been verified by you at that time. And I don’t think anyone reading this would think you would not have made an issue of that with me immediately, and you didn’t. Communication and understanding of all the material we provide is and always has been our top priority. Whether you relay to us that you don’t understand it as we explain it to you we will not know unless you express that. We invited you, multiple times to come to our office and the well location, free of all expenses, but you declined each time.

      “Mike Bowen assured me that I could expect a check in the mail by February of 2017. I started sending emails asking for updates. I would not hear back for days and sometimes weeks.”

      David, you didn’t have to ask for updates, you were given access to the portal to review the updates at your leisure, you continually disputed the validity of the updates, as you have in your inaccurate review. You sent several condescending and adversarial emails that were responded to immediately with a phone call. When we were able to reach you, we treated you cordially and respectfully, as you do accurately recount in your review. Although you did not give that same respect in your emails to us, but you did on the phone. Mike informed me on a consistent basis of trying to get in touch with you. He made mention several times that he thought you preferred not to speak with him because you never returned his calls, but you did mine. First you said you couldn’t understand the things I was telling you, then you said we wouldn’t tell you anything, this is very contradictory.

      “They were either dishonest or just plain not good at estimating drilling expenses. So, just understand that they can tell you the investment is $75,000 but then they can come back a year later and tell you that you need to pay another $6750 or you will lose the entire interest that you purchased for $75,000.”

      Page 2. Article (b) under paragraph 4 of the Subscription agreement that you signed.

      (b) I have received and read a copy of the Memorandum.

      Page 5 of the Private Placement Memorandum that we sent you.

      Pricing: Each Unit is priced at $154,000 per Unit. The purchase price for the Units is due and payable as follows: (a) the first installment of $105,000 is due at the time a Subscription Agreement is tendered to the Company and (b) the second installment of $49,000 is due when the Participants are notified by the Company that the Wells will be completed. The Shawnee 2 Field Prospect is a “turnkey” program for investors. Accordingly, the Company will pay all of the costs relating to the drilling, testing and completion of the Wells, and investors will not be subject to additional assessments for such costs.

      Page 16 of the Private Placement Memorandum that we sent you.

      Failure to Pay Second Installment. In the event any Participant fails to pay the second installment of the purchase price for the Wells, when due, he shall not be subject to loss of benefits with respect to the Wells, but shall be subject to a five hundred percent (500%) penalty for failure to pay such installment. This five hundred percent (500%) penalty shall be paid by the Company, out of the funds which would have otherwise been paid to the delinquent Participant, to the person or entity which paid the installment on behalf of the delinquent Participant.

      “Well, time kept ticking away. Now, there was another capital call. So the drilling was now more expensive than they had predicted and in order for everybody to keep the shares they had already invested in – they would have to fork over thousands of dollars more. This was before we would even know if there was any oil. So in other words – they were poor in their estimating the costs and now for us to even keep the shares we had already spent tens of thousands of dollars on – we would have to fork over more money – all with the same risks.”

      Page 18 of the Private Placement Memorandum that we sent you.

      Assessments for Subsequent Operations. If additional remedial work on the Wells is required at some point in the future, the Operator will call for assessments to pay for such remedial work. The amount of each Participant’s assessment shall be determined on the basis of the number of Units purchased. The amount of such assessments must be paid to the Company within ten (10) business days after notice is mailed to Participants that such remedial work will be performed. In the event any Participant fails to pay an assessment, when due, he shall not be subject to loss of benefits with respect to the Wells, but shall be subject to a five hundred percent (500%) penalty for failure to pay such assessment.

      David, I have added the paragraphs out of the legal documents that were sent to you for your review and signature before you invested in the prospect you are referring to. It’s very clear you either didn’t read them then, or review them again before you decided to write this slanderous, inaccurate review. As you can see, the accusations you are making are inaccurate and are not factual to this point.

      This is the day you signed your contract,

      I approved it on November the 11th. There is a 10-day rescission clause, so I always wait 10 days before I signed and returned the agreement back to you.

      In your review you state the final check was sent in February 2017. That is not accurate, you sent your last check in February of 2018 for the Woodford

      completion in the second well. You essentially invested the first week of November. We began moving the drilling rig on location on January 15th and started drilling on the first well on January the 27th, 87 days after you signed up, operations commenced well before that. I know you would like everyone to believe as you have stated that there was 20 months of delays but that is simply untrue. Here is an update I sent out when the drilling commenced on the first well.

      Back to list

      Weekly Activity Report

      27 Jan 2017 10:42 PM | Cannon Administrator (Administrator)

      As you can see from the pictures, we completed set up last night. We have drilled to 700’ and are setting surface casing today. The casing will be cemented in place and left for 24 hours to cure. We will run a cement bond log tomorrow then commence with the drilling.

      All the activities, vendors, equipment etc. that it takes to build and prep location, drill the well, complete the well and install production facilities is a process. Just to move the drilling rig on and off location alone involves a minimum of 80 18-wheeler loads of extremely heavy equipment. Some have to be permitted for transport and the permits and routes are time, and time of day sensitive. A one-day delay could turn into several. I’m sure you can understand how conditions can delay that process. Drilling locations are not on concrete roads or pad sites. I can prep my locations to accommodate these conditions, but I can’t do so for the one they are moving off of. One vender delay could and often does result in several other vender delays. Each of these tasks have to be completed in an order. If that vendor can’t come and do his job because the previous vendor has not completed his, then they will go to the next job and we have to reschedule. I could go into more detail, but I hope you understand the process. The time frame given to you initially when production should start, and revenue to be dispersed, was a projected timeline and was explained to you that way. We make it a priority to stick to that but that’s not always reality, as anyone in the service industry understands. This was a two well drilling program and things change from one well to the next. Yes, the first well was a dry hole, even though we initially encountered commercial oil production. We had to step back and evaluate that, make any adjustments necessary to possibly keep that from happening on the next well. There were absolutely no preliminary indications that showed this well would be any different. All the preliminary results were identical to the other productive wells I’ve drilled in the area. Unfortunately, these two didn’t end with those results.

      To Summarize,

      To list your accusations 1-5, As I have demonstrated in this response, 1-5 were false.

      1. False,

      I have drilled seven wells in this immediate area, 5 commercial producers when they were drilled, 1 of the five returned to date, (5 years) a 3 to 1 return to the investors and if oil prices wouldn’t have dropped to $28 a barrel it would have been 4-5 to 1, at a cost of 2.1 million, 6.3 million net total and still producing. Your 2 wells where 1.7 million, 3.4 million total. So, one of the wells out of the 4 I have still producing payed twice what your wells cost. I’ll let the reviewers decide how good my team is.

      2. False,

      You were given access to a portal that regular updates were entered into for your convenience. Whether you liked or felt they were meaningful the does not discount the fact that they were available and accurate to you 24/7 at the click of a mouse.

      3. False,

      Simple math and common sense proves you are not recalling the facts as they were.

      4. False,

      The agreement you signed as demonstrated above proves otherwise.

      5. False,

      Oil & Gas exploration is a 100% tax write off whether the wells are successful or not. So even your statement of a total loss is untrue.

      As I mentioned in an email to you David, you can review me all you want, just give an accurate one. We pride ourselves in protecting our investors by having accurate and available information available at any time. You were granted that same protection and transparency.

      This is the end of your email to me.

      “I don’t wish you any ill will. I said what I felt was an honest opinion. Nothing more, nothing less. I would gladly remove any piece of the review that you could prove was a misrepresentation. Maybe my emotions got the best of me, but I will leave it up to you to tell me which part was truly false.”

      Dave,

      I appreciate your willingness to remove any piece of the review that is a misrepresentation and your ability to recognize that emotions may have gotten the best of you, thank you. I believe we have demonstrated from the facts presented above, (not our view or our opinion on the subject) that we have been able to accurately address your challenges and proven that the total review should be removed. I understand your frustration for the loss David. I hate when the things I invest in don’t work either and I feel that same frustration.

      I trust that you are a man of your word and you will remove your entire review from here and all the other places you posted it. I hope your next endeavor is successful.

      If you have any questions about this review or my response and want documentation to verify it. You can contact me at,

      William Baker

      972-941-4218

      [email protected]

  2. Very Questionable Review

    We do one type of investment, for this individual to claim he was sent the wrong info doesn’t add up. For him to state he lost $5,000.00 when he didn’t even invest shows an odvious attemt of deception. This site reminds me of Rip of Report. They claim to want to rid the world of scams, but do not have the ability to verify the validity of the posts, outright lie!! BBB and other reputable review sites can, but they can’t, odvious deception. They have a hold harmless disclaimer to try to keep from being sued by the companies and individuals they allow to be unfairly slandered. And hide behind “freedom of speech” in the constitution. Anyone that takes anything this site puts out seriously will never hold a fare option of who it was written about.

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