Santa Fe Energy Trust 1st Quarter 2007 Distribution Announcement
May 01 2007 - 9:54AM
Business Wire
Santa Fe Energy Trust (NYSE:SFF) announced the Trust income
distribution for the operating quarter ended March 31, 2007.
Unitholders of record on May 15, 2007, will receive a distribution
amounting to $2,552,310 or $0.40513 per unit payable May 31, 2007.
As previously announced by the Trust, the Trustee has been informed
by Devon Energy Corporation that Devon believes it may have
overpaid the Trust during 2006 and prior years for its net profits
royalties. In connection with Devon's calculation of the quarterly
distribution, Devon has provided the Trustee with a preliminary
estimate of the aggregate amount it believes it has overpaid the
Trust. Devon estimates that it has overpaid the Trust by an
aggregate of approximately $6.7 million over a number of years.
Devon has cautioned the Trustee that this estimate is preliminary,
and that Devon's review is ongoing. This distribution includes
$270,000 resulting from the sale of a net profits interest during
the quarter, but does not include any other amounts payable on the
Trust's net profits interests, as Devon has concluded that Devon is
entitled to reduce the distribution by the approximately $1.9
million otherwise payable on the net profits interests in order to
recoup a portion of the amount Devon believes it has overpaid the
Trust. The Trustee and its independent consultants have not been
able to confirm the accuracy of the information or estimates
provided by Devon, or the appropriateness of Devon's determination
that it is entitled to recoup the amount it is withholding from the
distribution. The net profits interests held by the Trust include
interests in the Anton-Irish field located in Texas. The Trustee
has been informed that the December 31, 2005 reserve report
prepared for the Trust by its independent petroleum engineers
included interests purportedly held by the Trust in the Anton-Irish
field with a net present value in the range of $10-12 million as of
December 31, 2005. Devon has informed the Trustee that the
preliminary results of its review indicate that the Trust's actual
net profits interest in the Anton-Irish field is substantially less
than the interest previously reported to the Trust's petroleum
engineers and used in the preparation of the December 31, 2005
reserve report. Accordingly, based on the information provided by
Devon, the Trustee expects the net present value of the Net Profits
Interest actually owned by the Trust in the Anton-Irish Field to be
insignificant. The Trust intends to obtain a new reserve report
from the independent petroleum engineers as soon as possible.
However, the petroleum engineers will be unable to prepare a new
report until Devon has completed its review as described above.
Price and Volume Statistics for the Quarter Were: � Volumes Prices
Oil Gas Oil Gas (BBLS) (MCF) ($/BBL) ($/MCF) Wasson ODC Unit
60,200� �� 52.73� �� � Net Profits Royalties 26,259� 173,602�
48.18� 5.95� The Trust will be liquidated on or before February 15,
2008.
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