Meritage Energy Partners purchased oil fields in the Powder River, Wind River, and DJ Basins in seven separate transactions. The fields were primarily dead oil reservoirs where we identified upside associated with initiating water flood operations, improving existing water floods, or enhancing reservoirs with a natural water drive component.
Meritage increased production and added value by drilling new wells, installing or modifying water injection, adding behind-pipe zones, recompleting wells, and/or enhancing artificial lift capacity.
The fields were profitably sold in 2006 to Citation Oil and Gas.
Meritage initially purchased an oil field in the Railroad Valley of Nevada to create cash flow for the company, then followed with a purchase of producing wells and undeveloped acreage in the Wolfberry Trend of the Midland Basin. Meritage proceeded to acquire additional acreage and drill 25 new vertical Wolfberry-style wells.
These assets were profitably sold to Berry Petroleum, Inc. in early 2010.
Meritage seeded its third company with a modest amount of acreage that was not included in the sale of Meritage Energy Company II. The Company proceeded to accumulate 15,000 acres in the trend and 50 new Wolfberry wells (achieving “best in class” results for initial rates and ultimate recoveries).
These assets were profitably sold 2 years later to Three Rivers Oil Company (3ROC).
MECO IV was formed and funded in February 2014 with the backing of our existing institutional and private individual investors, along with two new institutional investors.
MECO IV currently operates 250 wells located primarily in Winkler and Pecos County, Texas. We also own significant non-operated interests primarily located in Winkler and Pecos, Texas and Lea County, NM with operators such as Concho and XTO.
MECO IV also owns substantial surface acreage, royalty interests, and saltwater disposal infrastructure. We have formed new subsidiaries (MECO IV Royalty, LLC, MECO IV Midstream, LLC) to conduct new business related to these activities.