Research – 53 Wells Now Gone.

I was asked about the 53 wells that Austin now has 100% ownership in, and why MEO chose to give away its ownership?

In 2004 and 2005, Pat Powers was President, etc., of MEO, and he bought several groups of oil and gas wells in North and Central Tennessee. On one land package there were 53 shallow depth wells, on 1,900 acres. They’d been shut-in in 1985, due to low oil and gas prices.

August 17, 2006, MEO and Austin signed an agreement, and Austin will pay 100% of the costs of completion, stimulation, equipping, and tie-in for each of the 53 wells, to earn a 50% participating interest. Equipment and crews were to be on site within days.

August 1, 2007 Montello secretly signs away its ownership, by way of Quit Claim, to Austin. What is interesting is that both companies keep this secret until the NR’s of Nov. 29, 2007, when they state it happened, but don’t state when. Montello paid nothing for the development work, got nothing in return, and Austin paid about $800,000 for work-overs on the wells. Montello had nothing to loose by holding on to the wells, and a gain of 50% of any production.

If, it was like the Blackrock deal, where it was signed on one date, and effective on another date, then fine, but if there’s nothing to hide, then why the secrecy?

MEO NR August 24, 2007, the first time that Montello used the following in it’s NR’s:

“Reader Advisory: …The Corporation’s actual results, performance or achievements could differ materially form those expressed in, or implied.”

With the MEO NR, we are told that from this date forward, MEO has forewarned its shareholders that it may lie to them. So what’s the real story?

A Quit Claim on 53 wells, especially one that is kept secret for 4 months sounds fishy.