Freeport-McMoRan Oil and Gas Royalty Trust Makes Announcement
HOUSTON--(BUSINESS WIRE)--Feb. 8, 2000--Freeport-McMoRan Oil and Gas Royalty Trust (OTCBB:FMOLS) announced that for the month of December 1999 Gross Proceeds exceeded the Trust's Class A costs by $155,630. As a result of the above, the Class A cost carry-forward has decreased to $22,271,463. 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 $24,275 were paid from the Trust administrative reserve resulting in $872,345 remaining in the expense reserve.
For the month, Gross Proceeds included oil and condensate revenues of approximately $631,707 and gas revenues of approximately $98,971 from sales volumes of 25,149 barrels and 37,473 mcf, respectively, net to the Trust's interest. Class A costs included $351,706 in operating and transportation costs and $64,484 in capital expenditures related to workover activities on West Cameron 498, net to the Trust's interest. Class A costs also included $158,859 in interest charges related to the Class A cost carry-forward.
During December 1999, the Working Interest Owner participated in a Joint Audit of High Island A552. Preliminary findings indicate the Working Interest Owner is due credits for operating expenses from the operator previously billed to the Working Interest Owner. In addition, the Working Interest Owner is entitled to operating and processing fees attributable to production from offsetting blocks being processed on the High Island A552 platform. The Working Interest Owner began suspending payments of operating expenses to the operator in early 1999. |
