Gulf Coast Ultra Deep Royalty Trust Announces Quarterly Cash Distribution
Natural gas (Mcf) sales volumes, average sales price and net cash proceeds available for distribution for the quarter ended
Natural gas (Mcf) sales volumes (a) |
|
87,121 |
|
Natural gas (per Mcf) average sales price |
$ |
4.98 |
|
Gross proceeds |
$ |
434,239 |
|
Post-production costs and specified taxes |
|
(47,292 |
) |
Royalty income |
|
386,947 |
|
Interest and dividend income |
|
8,810 |
|
Administrative expenses |
|
(189,676 |
) |
Income in excess of administrative expenses |
|
206,081 |
|
Increase in minimum cash reserve (b) |
|
(8,750 |
) |
Cash proceeds available for distribution |
$ |
197,331 |
|
(a) Attributable to the onshore Highlander subject interest which is the only subject interest with commercial production. |
(b) The Trust is withholding, and in the future intends to withhold, |
As previously disclosed, on
The onshore Highlander subject interest is the only subject interest that has established commercial production. Accordingly, shutting in the well for an extended period of time will eliminate any production from the onshore Highlander subject interest during such period, which will also eliminate any proceeds to which the Trust would be entitled pursuant to its overriding royalty interest during the same period. Therefore, while the well remains shut in, the Trust will not receive income attributable to its overriding royalty interest; further, unless the operational issues with the well can be rectified and the well can be reopened, the well is redrilled or another well is drilled on the onshore Highlander subject interest, the Trust does not expect to receive any income attributable to its overriding royalty interests and accordingly, does not expect to have any cash available to distribute to Trust unitholders in future periods.
About
Cautionary Statement Regarding Forward-Looking Information. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are all statements other than statements of historical facts, such as any statements regarding future operations on and production from the Highlander subject interest, expectations regarding the repair or redrill of the well on the Highlander subject interest, the drilling of another well on the Highlander subject interest, the Trust’s future income from the overriding royalty interests, future distributions to Trust unitholders and the amount and date of quarterly distributions to unitholders. Forward-looking statements are not guarantees or assurances of future performance and actual results may differ materially from those anticipated, projected or assumed in the forward-looking statements. Important factors that may cause actual results to differ materially from those anticipated by the forward-looking statements include, but are not limited to, the amount of cash received or expected to be received by the Trustee from the underlying properties on or prior to a record date for a quarterly cash distribution. Any differences in actual cash receipts by the Trust could affect the amount of quarterly cash distributions. Other important factors that may cause actual results to differ materially include risks inherent in production of oil and gas properties, the ability of commodity purchasers to make payment, and other risk factors described in the Trust’s Annual Report on Form 10-K for the year ended
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