Merit Energy Co.

Transaction Type
Sellers
Marketers
Basin
Gulf of Mexico
Post Date
Close Date
Estimated Price
MM
Description

Privately held, Dallas-based Merit Energy Co. has retained Merrill Lynch & Co. to sell all of its interests in the Gulf of Mexico. The package includes 156,800 net acres offshore Louisiana and Texas. Proved reserves are 27.5 million barrels of oil equivalent (61.9 million barrels proved probable and possible). Net production expected as of June 1 is 11,721 barrels of oil per day (81% gas), with 576 barrels equivalent to come online after June 1. Merit will consider dividing the assets into three regional packages including: Offshore Louisiana operated assets with 73,000 acres and 16.2 million barrels equivalent proved (75% gas); Offshore Texas operated with 74,800 net acres and 2.9 million proved (93% gas); and offshore nonoperated assets with 8,900 net acres and 8.5 million barrels proved (74% gas). The effective date is June 1. The bid due date is the last week of June. The closing is expected by Sept. 1. Contact Randy King, 713-759-2528, randy_king@ml.com.