DALLAS, Feb. 19, 2014 /PRNewswire/ -- Dominion Resources
Black Warrior Trust (NYSE: DOM) today announced a quarterly
cash distribution to the holders of its units of beneficial
interest of $0.171950 per unit.
The distribution will be payable March 11,
2014 to unitholders of record on March 3, 2014. Dominion's cash distribution
history, current and prior year financial reports, a link to
filings made with the Securities and Exchange Commission and more
can be found on its website at
http://www.dom-dominionblackwarriortrust.com/.
This distribution represents the quarterly royalty payment from
Walter Black Warrior Basin LLC ("WBWB") reflecting production from
October 1, 2013 to December 31, 2013. WBWB reported that
production attributable to the Trust's overriding royalty interests
was approximately 474 million cubic feet ("MMcf") during this
period compared to 481 MMcf in the previous quarter. Prices
for this quarter to the trust averaged $3.57 per Mcf compared to $3.54 per Mcf for the previous quarter.
Production for this quarter was relatively flat compared to the
previous quarter.
In March 2012, WBWB notified the
Trustee that it was undertaking a study of the Underlying
Properties on a well-by-well basis to determine the economic
viability of continuing to produce each individual well. WBWB
has plugged and abandoned 11 such wells, mostly in the fourth
quarter of 2012. These wells were very low producing and
deemed non-economical. Additional information about remaining
wells has been disclosed in detail in the Trust's September 30, 2013 10-Q filed on November 4, 2013. The additional decisions
on a well by well basis could adversely affect the Trust's future
revenue stream, and if a significant number of wells are abandoned,
it could cause a termination of the Trust. The total number
of wells abandoned in 2013 was 11 wells. Walter Energy will
continue to evaluate the economic viability of each well on an
ongoing basis and provide notice as to any development.
The Trust owns overriding royalty interests burdening certain
proved developed coal seam gas properties owned by WBWB and located
in the Black Warrior Basin of Alabama. The Trust is a grantor
trust originally formed by Dominion Resources, Inc. The Trust is
designed to provide unitholders with quarterly cash distributions
from its royalty interests in certain coal seam gas
properties. The units are listed on The New York Stock
Exchange under the symbol "DOM".
As previously disclosed, U.S. Trust, Bank of America Private
Wealth Management has announced its intention to resign as trustee
of the Trust, subject to certain conditions set forth in the
trustee's notice dated January 9,
2014, including unitholder approval of a successor
trustee.
The 2013 tax information packets are expected to begin mailing
directly to unitholders in early March 2014. A copy of
Dominion's 2013 tax information booklet will be posted on
Dominion's website by March 1,
2014. In addition to the tax booklet the Dominion website
also offers two simple calculators for computing the income and
expense amounts and the cost depletion. To facilitate
unitholder tax preparation, both the income and expense and the
depletion calculators are now updated on Dominion's website for
2013 tax reporting.
SOURCE Dominion Resources Black Warrior Trust