Freeport-McMoRan Oil and Gas Royalty Trust Makes Announcement
HOUSTON--(BUSINESS WIRE)--Oct. 13, 1999--Freeport-McMoRan Oil and Gas Royalty Trust (OTCBB:FMOLS) announced that for the month of August 1999 Gross Proceeds, calculated to include the items identified below, exceeded Class A costs by $174,259. The Class A cost carry-forward includes the final settlement of the previous property assignment to the operator of West Cameron Block 215, Breton Sound Block 55 and Vermilion Block 58, as well as the reversal of the related plug and abandonment accrual associated with these assigned properties in the amount of $3,989,615. As a result, the Class A cost carry-forward has decreased to $22,421,107. Because of the Class A cost carry-forward, there will be no distribution for the month of September. 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 $6,698 were paid from the Trust administrative reserve resulting in approximately $1 million remaining in the expense reserve.
For the month, Gross Proceeds included oil and condensate revenues of approximately $94 thousand and gas revenues of approximately $(47) thousand from sales volumes of 11,840 barrels and 25,173 mcf, respectively, net to the Trust's interest. Class A costs included a credit of approximately $(110) thousand of recompletion and capital costs for completed AFE's attributable to West Cameron Block 498 and credit of $221.4 thousand in operating and transportation costs, net to the Trust's interest. The credit for gas revenue, operating and transportation costs are primarily attributable to the settlement of the assignment of interest to the operator of Breton Sound Block 55, Vermilion Block 58 and West Cameron Block 215.
On August 30, 1999 the Working Interest Owner assigned its ownership interest in Vermilion Blocks 21/22 to the operator and paid the operator $297,500 ($267,482 net to the Trust) 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 April 1, 1999. A final settlement will occur within 45 days after August 30, 1999 to allocate income and expenses attributable to the assigned interest subsequent to the effective date. |
