The Trustee has been advised that there were 13.6 workover wells completed, 7.9 new wells completed, 7.2 new
wells in progress and 15.4 workover wells in progress during the three months ended September 30, 2023, as compared to 10.1 (net to the Trust) workover wells completed and 12.4 (net to the Trust) new wells completed, 4.5 (net to the Trust) new
wells in progress, and 2.6 (net to the Trust) workover wells in progress for the three months ended September 30, 2022, on the Waddell Ranch properties.
Lease operating expenses and property taxes totaled $20.2 million (gross) for the third quarter of 2023, compared to $11.5 million (gross) for the
same period in 2022 on the Waddell Ranch properties due to increased maintenance work.
Nine Months Ended September 30, 2023 Compared to Nine
Months Ended September 30, 2022
For the nine months ended September 30, 2023, royalty income received by the Trust amounted to $14,598,202
compared to royalty income of $39,032,624 for the nine months ended September 30, 2022. The decrease in royalty income is primarily attributable to increased capital expenditures for the Waddell Ranch properties resulting in net profits
interest income not being received in March 2023 through April 2023 and from July 2023 through the end of the nine month period in addition to a decrease in oil and gas pricing as compared to the nine months ended September 30, 2022. Average
oil and gas prices were $74.06 and $2.45 for the nine months ended September 30, 2023 compared to $96.49 and $5.56 for the nine months ended September 30, 2022.
Interest income for the nine months ended September 30, 2023, was $61,191 compared to $14,470 during the nine months ended September 30,
2022. The increase in interest income is primarily attributable to a substantial increase in the amount of funds available for investment. Total expenses during the nine months ended September 30, 2023, amounted to $955,607 compared to $755,594
during the nine months ended September 30, 2022. The increase in total expenses can be primarily attributed to increased expenses for professional services, printing expenses and the timing expenses.
These transactions resulted in distributable income for the nine months ended September 30, 2022 of $13,703,786 or $0.29 per Unit. For the nine
months ended September 30, 2022, distributable income was $38,291,500, or $0.82 per Unit.
Royalty income for the Trust for the nine months
ended September 30, 2023, is associated with actual oil and gas production for the period November 2022 through July 2023 from the properties from which the Royalties were carved. Oil and gas sales attributable to the Royalties and the
properties from which the Royalties were carved are as follows:
20