Merit Energy Corp.

Transaction Type
Sellers
Marketers
Basin
Permian, Midcontinent, Gulf Coast, Arkoma
Post Date
Close Date
Estimated Price
0MM
Description

Merit Energy Corp. has retained RBC Richardson Barr to sell certain assets in the Permian, Midcontinent and Gulf Coast basins.

The total package includes 171.1 billion cubic feet equivalent of net proved reserves (54% proved developed producing), with additional net probable and possible reserves totaling 80.4 billion equivalent. Forecast net production is 17.8 million cubic feet equivalent per day (82% gas). Merit operates 85% of net production and 95% of net proved reserves.

The Permian package in West Texas involves 5.1 billion cubic feet equivalent net proved reserves (28% proved developed producing). Production is 2.9 million cubic feet equivalent per day (100% operated). Major operated fields and formations include Dora Roberts (Ellenburger), Brown-Altman (Devonian), Mercury M (Fusselman), Fullerton (Ellenburger), Headlee North (Devonian) and Goldsmith North (San Andres). Upside includes 36 probable locations, 14 proved developed nonproducing locations, and 29 proved undeveloped locations primarily targeting the Wolfberry trend.

The Midcontinent package in the Texas Panhandle, Oklahoma, Kansas and Arkansas involves 108.8 billion cubic feet equivalent of proved reserves (65% proved developed producing; 27% operated). Net production for the start month is forecast at 13.3 million cubic feet equivalent (89% gas). Major operated fields and formations include Missouri Flats (LKC waterflood), Ellis Ranch (Cleveland), Mayfield West (Granite Wash) and Lipscomb (Cleveland).

The Arkoma Basin assets in Arkansas, a subset, include Mansfield Field in Scott County with net proved reserves of 51.7 billion cubic feet equivalent (78% PDP). Additionally, interests include numerous nonoperated working interests and overriding royalty interests in Kansas and Oklahoma.

The Gulf Coast package in South Texas involves 7.2 billion cubic feet of proved reserves (99% proved developed producing). Forecast production is 1.7 million cubic feet equivalent per day (100% operated). Major operated fields and formations are Karon (Luling and Slick units) and Maxine East, both in Live Oak County.

The data room will open on April 5. The bid due date is April 28. The effective date is May 1. The closing date is will be in late June. Contact Craig Lande, 713-585-3335, craig.lande@rbccm.com.