Monterey Oil Company
List of Deals
- 1953 339,733 shares common stock
- 1954 300,000 shares common stock
- 1954 acquisition of assets of Fullerton Oil & Gas Corporation and sale of notes
The Monterey Oil Company was organized in Delaware in 1950. Its two major subsidiaries, Wilmington Associates, Inc., and Monterey Exploration Company were both devoted to finding, refining, and selling oil and gas found in California and Texas. Monterey Oil’s main office was located in Los Angeles.
Monterey Oil and Wilmington Associates were both created to buy the stock of Jergins Oil Company. Jergins Oil was formed as a business trust in 1922 and as a corporation in 1938. Jergins Oil produced oil and gas from its California fields, including the Edison oil field in Kern County and the Rio Vista gas field. Jergins Oil also held stock in several other petroleum companies.
Monterey Oil and Wilmington Associates bought out the stockholders of Jergins Oil in 1950 and 1951. The two companies financed the purchase through the sale of $29.9 million in notes, preferred stock, and common stock. Jergins Oil was liquidated in 1951 and 1952, and Monterey Oil and Wilmington Associates took over its business. Monterey Oil’s sales were $8.5 million in 1951 and $10.1 million in 1952.
After Monterey Oil’s acquisition of Jergins Oil, it controlled fifty-eight leases in California, many in the Long Beach and Wilmington oil fields of Los Angeles County. The Edison oil field remained its largest single holding, with 87.5 net producing wells in 1953. In the rest of California, Monterey Oil controlled 106.5 net producing wells. The Monterey Exploration Company controlled oil fields in Texas and Oklahoma and continued searching for additional reserves. The majority of the California oil was delivered via pipeline to the Texas Company.
In 1953 Monterey Oil acquired additional oil and gas leases in California and Texas from B-L and Associates. The acquisition provided an additional 57.67 net producing wells to Monterey Oil’s holdings. B-L and Associates later changed its name to Wilshire Oil Company of Texas. Monterey Oil’s sales reached $11.6 million in 1953.
Monterey Oil purchased Fullerton Delaware for $50 million in 1954. This deal allowed Monterey Oil to acquire gas and oil fields in California, New Mexico, Texas, Oklahoma, and Wyoming. It also bought Fullerton’s natural gas plants in Texas and California.
Monterey Oil collaborated with the Texas Company in 1954 to complete a man-made island off of Seal Beach, near Long Beach in California. The companies tapped oil reserves in the tidelands off shore, spending over $1 million to build infrastructure to produce oil.