Merit Energy's merit pay is dependent on its success in developing oil and gas projects. The company acquires, develops, and operates mature producing oil and gas properties on behalf of equity-based limited partnerships. Merit Energy has eight core operating areas in North America. It manages assets in 13 US states (primarily in the Rockies, Midcontinent, and the South and Southwest) and in the Canadian province of Alberta. It also has operations in Michigan and the Gulf of Mexico. The company reports reserves of 453 million barrels of oil equivalent and production of more than 75,000 barrels of oil equivalent per day. It has interests in more than 11,000 wells.
Merit Energy is pursuing a strategy of buying low-risk mature producing fields from major oil companies and independents that are seeking to sell domestic assets in order to exploit higher-risk, higher-return oil and gas fields in the Gulf of Mexico and in other countries.
To raise cash to pay down debt, in 2011 the company put some of its Alberta assets up for sale. In 2010 it sold some of its Arkansas assets (about 39% of its total production base) to Crow Creek Energy and three other oil investment companies for about $210 million.
The company was founded in 1989 by William Gayden, who has also been a director of Harte-Hanks since 2001. – less