$MVO is a great way to play the oil prices and get a great dividend (11%).
MVO was formed in August 2006 by MV Partners, LLC. MVO conveys a term net profits interest to the trust that represents the right to receive 80% of the net proceeds from all of MVO's interests in oil and natural gas properties, which are located in the Mid-Continent region in Kansas and Colorado.
As of June 30, 2006, the underlying properties produced predominantly oil from approximately 985 wells, and the projected reserve life of the underlying properties was in excess of 50 years.
Production from the underlying properties for the year ended Dec. 31, 2005, was approximately 98% oil and approximately 2% natural gas and natural gas liquids.
The underlying properties are all located in mature fields that are characterized by long production histories and numerous additional development opportunities to help reduce the natural decline in production from the underlying properties.
The net profits interest will terminate on the later to occur of (1) June 30, 2026, or (2) the time when 14.4 MMBoe have been produced from the underlying properties and sold, which amount is the equivalent of 11.5 MMBoe in respect of the trust's right to receive 80% of the net proceeds from the underlying properties pursuant to the net profits interest. (Source: MVO Prospectus.)
