Profile: Mesa Royalty Trust (MTR.N)
19 Sep 2014
Mesa Royalty Trust (the Trust) was created when Mesa Petroleum Co. conveyed to the Trust an overriding royalty interest (the Royalty) equal to 90% of the net proceeds in certain oil and gas properties located in the Hugoton field of Kansas, the San Juan Basin field of New Mexico and Colorado, and the Yellow Creek field of Wyoming (collectively, the Royalty Properties). The Bank of New York Mellon Trust Company, N.A. is the Trustee of the Trust.
The principal property interest conveyed to the Trust accounts for approximately 40% of the Trust’s reserves and was carved out of Pioneer’s (PNR) working interest in 104,437 net producing acres in the Hugoton field. The gas produced from the Hugoton properties is available for sale on the spot market. The Trust’s interest in the San Juan Basin was conveyed from PNR’s working interest in 31,328 net producing acres in northwestern New Mexico and southwestern Colorado. The San Juan Basin-New Mexico reserves, including a few wells located in Southwestern Colorado, retained by ConocoPhillips represent approximately 53% of the Trust’s reserves. Substantially all of the natural gas produced from the San Juan Basin is sold on the spot market.
The Trust owns an interest in 26,700 gross acres and 25,400 net acres with Fruitland Coal potential. The working interest owner has advised the Trust that, as of December 31, 2011, the working interest owner had drilled on Trust properties 50 (29.3 net) Fruitland Coal wells, all of which are operated by the working interest owner. As of December 31, 2011, of the wells drilled on Trust properties, 49 (34.8 net) were producing at a combined rate of 35 (16.1 net) million cubic feet of natural gas (MMcf) per day. During the year ended December 31, 2011, the Company had no development wells drilled on the Royalty Properties.
Mesa Royalty Trust
5TH FLOOR, 919 Congress Avenue
AUSTIN TX 78701