Freeport-McMoRan Oil and Gas Royalty Trust Makes Announcement
HOUSTON--(BUSINESS WIRE)--Aug. 5, 1999--Freeport-McMoRan Oil and Gas Royalty Trust (NYSE:FMR) announced that for the month of June 1999 the Trust's Class A Costs exceeded the Trust's Gross Proceeds by $61,253. In addition, during the month of June 1999, in a separate transaction, the Working Interest Owner received approximately $1.7 million (1,208,254 mcf) in settlement for gas imbalances incurred prior to Jan. 1, 1999. As a result of these factors, the cumulative Class A cost carry-forward decreased to $26,448,446.35. Because of the Class A cost carry-forward, there will be no distribution for the month of July 1999. The Working Interest Owner is entitled to recoup the cumulative carry-forward from future Gross Proceeds prior to making royalty payments to the Trust. Net current month Trust administrative expenses of $38,832.98 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 $0.1 million and gas revenues of approximately $0.1 million from sales volumes of 4,654 barrels and 45,650 mcf, respectively, net to the Trust's interest.
On May 19, 1999 the Working Interest Owner assigned a ownership interest in West Cameron Block 215, Breton Sound Block 55 and Vermilion Block 58 to the operator in exchange for the operator's assuming all duties and obligations with respect to the assigned interest and existing wells and platforms. The assignment was effective Jan. 1, 1999.
The Working Interest Owner is reviewing all options relating to its ownership interest in the remaining properties, including discussions with several unitholders |
