Friday May 22, 6:59 am Eastern Time
Company Press Release
SOURCE: Torch Energy Royalty Trust
Torch Energy Royalty Trust Declares Second Quarter 1998 Distribution
HOUSTON, May 22 /PRNewswire/ -- Torch Energy Royalty Trust (NYSE: TRU - news) today announces a cash distribution of 39.0 cents per unit,
payable on June 11, 1998, to unitholders of record on June 1, 1998. This cash distribution is attributable to first quarter 1998 production from the
Underlying Properties.
The estimated Section 29 Tax Credit attributable to first quarter production is approximately 10 cents per unit. Unitholders are entitled to these tax
credits under Section 29 of the Internal Revenue Code for coal seam and tight sands gas produced and sold from January 1, 1998 to March 31, 1998.
Production attributable to the Trust's net profits interests, excluding Robinson's Bend Field, was 1.4 billion cubic feet of gas (Bcf) and 20,634 barrels of
oil for the quarter. Production attributable to the trust's net profits interests in the Robinson's Bend Field was 711 million cubic feet of gas.
The average price paid to the trust during the second quarter, attributable to first quarter production, was $1.95 per Mcf of gas after gathering fees, and
$12.36 per barrel of oil. During the first quarter, Torch Energy Marketing, Inc. (TEMI) accrued no price credits. Price credits arise as a result of
TEMI's obligation to purchase gas for the minimum price of $1.70 per MMBtu during periods when natural gas prices fall below the minimum price.
The Royalty Trust's properties are depleting assets consisting of net profits interests in proved developed oil and gas properties located in Texas,
Alabama and Louisiana. Approximately 97% of the estimated reserves are gas.
Torch Energy Advisors Incorporated, an employee-owned company headquartered in Houston, Texas, provides outsourcing services to the energy
industry. Services include upstream and mid-stream property operations, exploration and exploitation services, corporate and property acquisitions, due
diligence and divestitures and hydrocarbon marketing and risk-management. In addition, Torch provides capital in the form of debt and equity to
independent producers for acquisition and development opportunities through Torch Energy Finance Company. Torch's wholly owned subsidiary,
Novistar, is the largest dedicated provider of outsourced administrative and information technology services to the energy industry.
TORCH ENERGY ROYALTY TRUST
Quarter Ended June 30, 1998 Distribution *
Chalkley,
Cotton Valley Robinson's
and Austin Chalk Bend
Fields Field Total
MCF
Chalkley 864,519 --
Cotton Valley 385,241 --
Austin Chalk 103,798 --
Robinson's Bend ** -- 710,891
1,353,558 710,891
BBLS
Chalkley 7,299 --
Cotton Valley 2,319 --
Austin Chalk 11,016 --
Robinson's Bend -- --
20,634 --
Average price
Per MCF (after
gathering fees) $ 2.06 $ 1.74
Per BBL $ 12.36 $ 0.00
Gas revenues, net of
gathering fees 2,786,169 1,238,190
Oil revenues 254,963 --
3,041,132 1,238,190
Lease operating expenses 385,289 --
Severance taxes 110,766 47,545
496,055 47,545
Net proceeds before
capital expenditures 2,545,077 1,190,645
Capital expenditures 32,473 --
Net proceeds 2,512,604 1,190,645
Net profits percentage 95.00% 95.00%
Net profits income 2,386,974 1,131,113 3,518,087
Interest income 6,335
General and administrative
expenses (170,421)
Distribution 3,354,000
Distribution per unit 0.390
* Generated by production during the quarter ended March 31, 1998.
** Represents 100% of the Underlying Property production; 237,154 mcf
short of volume limitation."
SOURCE: Torch Energy Royalty Trust |
