Freeport-McMoRan Oil and Gas Royalty Trust Makes Announcement
HOUSTON--(BUSINESS WIRE)--June 6, 2001--Freeport-McMoRan Oil and Gas Royalty Trust (OTCBB:FMOLS) announced that for the month of April 2001 the Trust's Gross Proceeds exceeded the Class A costs by $400,071. As a result of the above, the Class A cost carry-forward has decreased to $15,590,576. In addition, net current month Trust administrative expenses of $39,897 were paid from the Trust administrative reserve resulting in $428,204 remaining in the expense reserve.
For the month, Gross Proceeds included oil and condensate revenues of approximately $548,022 and gas revenues of approximately $418,973 from sales volumes of 19,514 barrels and 65,609 mcf, respectively, net to the Trust's interest. Class A costs included $444,062 in operating and transportation costs and $22,920 in capital expenditure related to workover activities on West Cameron 498, net to the Trust's interest. Class A costs also included $99,942 in interest charges related to the Class A cost carry-forward.
In December 1997 the Working Interest Owner entered into a crude oil agreement with an oil pipeline company to deliver on a daily basis specified quantities of crude oil from West Cameron 498. Under the terms of agreement the Working Interest Owner agreed to pay a transportation fee calculated at a sliding monthly rate based upon the total average daily volumes delivered from West Cameron 498 during the month. Should the annual minimum delivery volume not be met, a deficiency payment is assessed by the pipeline company. During 2000 the Working Interest Owner did not deliver the minimum volume under the agreement. Therefore, in January 2001 the pipeline company billed the Working Interest Owner approximately $501,571 for the 2000 deficiency. The Working Interest Owner paid the amount due the pipeline company and this amount is included in the Class A cost carry-forward. |
