Freeport-McMoRan Oil and Gas Royalty Trust Makes Announcement
HOUSTON--(BUSINESS WIRE)--Sept. 2, 1999--Freeport-McMoRan Oil and Gas Royalty Trust (NYSE:FMR) announced that for the month of July 1999 the Trust's Class A costs exceeded the Trust's Gross proceeds by $136,360, increasing the cumulative Class A cost carry-forward to $26,584,806. Accordingly, there will be no distribution for the month of August 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. In addition, net current month Trust administrative expenses of $31,953 were paid from the Trust administrative reserve, reducing the amount remaining in the expense reserve to approximately $1 million.
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 16,839 barrels and 39,126 mcf, respectively, net to the Trust's interest. Class A costs included approximately $0.03 million of recompletion and capital costs for completed AFE's attributable to West Cameron Block 498 and $0.3 million in operating and transportation costs, net to the Trust's interest, both primarily for West Cameron Block 498, High Island 552 and West Delta 34.
The Working Interest Owner is reviewing all options relating to its ownership interest in the remaining properties, including discussions with several unitholders.
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