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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Paul Lee who wrote (6019)	6/16/1998 6:51:00 PM
From: Pilot	Read Replies (2) \| Respond to of 29382

FMR - Really doesn't look like the following is good news: These last two paragraphs from the May 15, 98 Annual do not seem all that upbeat: ____________________________ Total committed exploration and development costs for the remainder of 1998 are presently estimated by the Working Interest Owner to be approximately $3.5 million net to the Trust, primarily for the development of West Cameron Block 498. This estimate is derived from cost estimates provided by the operators of the Royalty Properties and may vary from actual costs depending on the success of drilling, particular circumstances encountered during drilling and many other factors outside the control of the operator. These expenditures can be expected to reduce and could further delay resumption of distributions to Unit holders. Estimated future abandonment costs, based on current laws and regulations, are accrued over the life of the Trust's properties (Note 7). As of March 31, 1998, the estimated remaining aggregate abandonment costs to be incurred for all of the Trust's properties totaled $9.5 million net to the Trust, of which all has been withheld from distributions to Unit holders. Any adjustments to the estimated abandonment costs or variances will reduce or increase future distributable cash accordingly. At certain times since late 1993, the Trust has been unable to pay its ongoing administrative expenses. To permit the Trust to pay its administrative expenses during the time the Trust incurs a Class A cost deficit, the Trustee, in accordance with the Trust Indenture, established a $2.4 million Trust administrative expense reserve to pay such expenses (Note 5), of which $1.7 million remained at March 31, 1998. --11-- __________________________________ And a conversion to avert a forced distribution: biz.yahoo.com Seems a bit speculative.