Freeport-McMoRan Oil and Gas Royalty Trust Makes Announcement
HOUSTON--(BUSINESS WIRE)--July 2, 1999--Freeport-McMoRan Oil and Gas Royalty Trust (NYSE:FMR) announced that for the month of May 1999 the Trust's Gross Proceeds exceeded the Trust's Class A Costs by $35,748.61 decreasing the cumulative Class A cost carry-forward to $27,915,663. Accordingly, there will be no distribution for the month of June 1999. In addition, net current month Trust administrative expenses of $47,872 were paid from the Trust administrative reserve resulting in approximately $1.1 million remaining in the expense reserve.
For the month, Gross Proceeds included oil and condensate revenues of approximately $0.2 million and gas revenues of approximately $0.1 million from sales volumes of 9,408 barrels and 66,497 mcf, respectively, net to the Trust's interest. Class A costs included reversals of approximately $0.2 million of recompletion and capital costs for completed AFE's attributable to properties assigned to Amerada Hess and $0.2 million in operating and transportation costs, net to the Trust's interest, primarily for West Cameron Block 498, West Delta 34 and High Island 552. The Working Interest Owner is entitled to recoup the cumulative carry-forward from future Gross Proceeds prior to making royalty payments to the Trust.
On May 19, 1999, the Working Interest Owner assigned its ownership interest in West Cameron Block 215, Breton Sound Block 54/55 and Vermilion Block 58 to the operator in exchange for the operator assuming all duties and obligations with respect to the assigned interest and existing wells and platforms. The assignment was effective January 1, 1999. A final settlement will occur within 120 days after May 19, 1999 to accurately allocate income and expenses attributable to the assigned interest after the effective date.
During the month of June 1999, in a separate transaction, the Working Interest Owner received approximately $1.7 million from the operator of the above listed properties in settlement for the gas imbalances incurred prior to January 1, 1999. These transactions will be reflected in the appropriate month's Statement of Computation of Net Proceeds Payable to the Royalty Trust. Such amounts will be reflected as a reduction in the Class A cost carry-forward in the appropriate month.
The Working Interest Owner is reviewing all options relating to its ownership interest in the remaining properties, including discussions with several unitholders. |
