Freeport-McMoRan Oil and Gas Royalty Trust Makes Announcement
HOUSTON--(BUSINESS WIRE)--May 31, 2000--Freeport McMoRan Oil and Gas Royalty Trust (OTCBB:FMOLS) announced that for the month of April 2000 the Trust's Class A costs exceeded the Gross Proceeds by $117,597. As a result of the above, the Class A cost carry-forward has increased to $20,476,676. 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 $52,534 were paid from the Trust administrative reserve resulting in $748,693 remaining in the expense reserve.
For the month, Gross Proceeds included oil and condensate revenues of approximately $702,048 and gas revenues of approximately $225,037 from sales volumes of 22,582 barrels and 82,407 mcf, respectively, net to the Trust's interest. Class A costs included $836,939 in operating and transportation costs and $55,050 in capital expenditures related to workover activities on West Cameron 498, net to the Trust's interest. Class A costs also included $152,693 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 the 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 1999 the Working Interest Owner did not deliver the minimum volume under the agreement. Therefore, in February 2000 the pipeline company billed the Working Interest Owner approximately $724,000 for the 1999 deficiency. The Working Interest Owner paid the amount due the pipeline company and this amount is included in the Class A cost carry-forward. |
