VOC Energy Trust Announces Trust Quarterly Distribution
January 17 2019 - 4:05PM
Business Wire
VOC Energy Trust (NYSE: VOC) announced the Trust distribution of
net profits for the fourth quarterly payment period ended December
31, 2018.
Unitholders of record on January 30, 2019 will receive a
distribution amounting to $2,465,000 or $0.145 per unit, payable
February 14, 2019.
Volumes, average sales prices and net profits for the payment
period were:
Sales volumes: Oil (Bbl) 127,081 Natural gas
(Mcf) 77,731 Total (BOE) 140,036 Average sales prices: Oil (per
Bbl) $ 63.18 Natural gas (per Mcf) $ 3.37 Gross proceeds: Oil sales
$ 8,028,371 Natural gas sales 262,183 Total gross
proceeds $ 8,290,554 Costs: Lease operating expenses $ 3,245,801
Production and property taxes 754,851 Development expenses
1,027,239 Total costs $ 5,027,891 Net proceeds $
3,262,663 Percentage applicable to Trust’s Net Profits Interest
80 % Net profits interest $ 2,610,130 Increase in cash
reserve held by VOC Brazos Energy Partners, L.P. 0
Total cash proceeds available for the Trust $ 2,610,130 Provision
for estimated Trust expenses (145,130 ) Net cash proceeds
available for distribution $ 2,465,000
VOC Brazos Energy Partners, L.P. (“VOC Brazos”) has reported to
the Trustee that it has entered into a joint venture agreement with
MD America Energy, LLC (“MD America”) to develop the lower
EagleBine interval, also referred to as the Lower Woodbine Organic
Shale (“LWOS”), within the north half of the Kurten Woodbine Unit
(the “North Contract Area”). Under the terms of the joint venture
agreement, MD America may carry VOC Brazos for its share of
drilling and completion costs for up to four LWOS wells (the “MD
Earning Wells”), with the first MD Earning Well to be spud by
December 31, 2018 and the fourth MD Earning Well to be spud by
November 20, 2020. In exchange, MD America has the opportunity to
earn a working interest representing 50% of VOC Brazos’ interest in
each MD Earning Well and up to a 50% interest in VOC Brazos’
acreage in the North Contract Area. After the MD Earning Wells are
completed, MD America also has the right to propose and drill up to
three LWOS wells per year. MD America spudded the first MD Earning
Well on November 20, 2018 and, as of the date of this press
release, MD America has also drilled and set production casing with
completion expected to occur later this year. The joint venture
agreement with MD America covering the North Contract Area is
separate from the previously reported joint venture agreement with
Hawkwood Energy East Texas, LLC (“Hawkwood Energy”) to develop the
LWOS within the south half of the Kurten Woodbine Unit (the “South
Contract Area”), whereby Hawkwood Energy may carry VOC Brazos for
its share of drilling and completion costs for up to four LWOS
wells (the “Hawkwood Earning Wells”).
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 MD and Hawkwood Earning Wells in which MD America
and 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 December 31, 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/20190117005683/en/
VOC Energy TrustThe Bank of New York Mellon Trust Company,
N.A., as TrusteeMike Ulrich(512) 236-6599
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