VOC Energy Trust Announces Trust Quarterly Distribution
October 18 2018 - 4:15PM
Business Wire
VOC Energy Trust (NYSE: VOC) announced the Trust distribution of
net profits for the third quarterly payment period ended September
30, 2018.
Unitholders of record on October 30, 2018 will receive a
distribution amounting to $3,740,000 or $0.22 per unit, payable
November 14, 2018.
Volumes, average sales prices and net profits for the payment
period were:
Sales volumes: Oil (Bbl) 132,381 Natural gas (Mcf)
83,385 Total (BOE) 146,279 Average sales prices: Oil (per Bbl) $
65.67 Natural gas (per Mcf) $ 3.29 Gross proceeds: Oil sales $
8,694,008 Natural gas sales 274,222 Total gross
proceeds $ 8,968,230 Costs: Lease operating expenses $ 3,201,465
Production and property taxes 224,814 Development expenses
607,682
Total costs
$ 4,033,961 Net proceeds $ 4,934,269 Percentage applicable
to Trust’s Net Profits Interest 80 % Net profits interest $
3,947,415 Increase in cash reserve held by VOC Brazos Energy
Partners, L.P. 0 Total cash proceeds available for
the Trust $ 3,947,415 Provision for estimated Trust expenses
(207,415 ) Net cash proceeds available for distribution $ 3,740,000
VOC Brazos Energy Partners, L.P. (“VOC Brazos”) has reported to
the Trustee that it has entered into a new joint venture agreement
with Hawkwood Energy East Texas, LLC (“Hawkwood Energy”) to develop
the lower EagleBine interval, also referred to as the Lower
Woodbine Organic Shale (“LWOS”), within the south half of the
Kurten Woodbine Unit (the “Contract Area”).
The previous joint venture with Hawkwood Energy was terminated
in 2017. Under the terms of the new joint venture agreement,
Hawkwood Energy may carry VOC Brazos for its share of drilling and
completion costs for up to four LWOS wells (the “Earning Wells”),
with the first Earning Well to be spud by August 31, 2018 and the
fourth Earning Well to be spud by June 30, 2019. In exchange,
Hawkwood Energy has the opportunity to earn a working interest
representing 50% of VOC Brazos’ interest in each Earning Well and
up to a 50% interest in VOC Brazos’ acreage in the Contract Area.
After the Earning Wells are completed, Hawkwood Energy also has the
right to propose and drill up to eight LWOS wells in 2019 and
twelve LWOS wells in 2020. There is no contractual limitation of
the number of wells per year to propose and drill after 2020. To
date, Hawkwood has drilled and set production casing on the first
two Earning Wells, with completion of both such wells expected to
occur later this year.
Activity pursuant to the terms of the joint venture agreement
recommences the horizontal LWOS drilling development program that
VOC Brazos previously reported to the Trustee in
December 2014. VOC Brazos is evaluating the potential economic
benefits associated with development of the LWOS and pad drilling
in the upper EagleBine interval. If these activities are pursued,
with the exception of the Earning Wells in which Hawkwood Energy
would carry VOC Brazos for its share of drilling and completion
costs, such activities would result in increased development costs
burdening the net profits interest of the Trust relative to
historical development costs. As a result of such increased
development costs, cash available for distributions by the Trust
would be temporarily reduced until anticipated production from the
various development efforts in the Kurten Woodbine Unit can be
brought on-line. To address these emerging opportunities, VOC
Brazos will continue to evaluate the appropriate strategy and
capital plan to fund development for the Trust.
This press release contains forward-looking statements. Although
VOC Brazos has advised the Trust that VOC Brazos believes that the
expectations contained in this press release are reasonable, no
assurances can be given that such expectations will prove to be
correct. The announced distributable amount is based on the amount
of cash received or expected to be received by the Trustee from the
underlying properties on or prior to the record date with respect
to the quarter ended September 30, 2018. Any differences in actual
cash receipts by the Trust could affect this distributable amount.
Other important factors that could cause these statements to differ
materially include the actual results of drilling operations, risks
inherent in drilling and production of oil and gas properties, the
ability of commodity purchasers to make payment, and other risk
factors described in the Trust’s Form 10-K for the year ended
December 31, 2017 filed with the Securities and Exchange
Commission. Statements made in this press release are qualified by
the cautionary statements made in these risk factors. The Trust
does not intend, and assumes no obligation, to update any of the
statements included in this press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20181018005781/en/
VOC Energy TrustThe Bank of New York Mellon Trust Company,
N.A., as TrusteeMike Ulrich, 512-236-6599
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