LL&E Royalty Trust Announces No Trust Distribution for June 2009
30 May 2009 - 3:12AM
Business Wire
LL&E Royalty Trust (NYSE:LRT) announced today that there
will be no Trust income distribution for the month of June 2009 for
Unit holders of record on June 5, 2009. This release relates to
production for the month of March 2009. Trust related expenses for
the month of March 2009 totaled $23,273 while Royalty income will
be $4,342. Trust expenditures in excess of Royalty income received
reduce the Trust�s reserve for Trust expenses and/or increase the
Trust�s unpaid accounts payable. At May 27, 2009 the Trust had
accounts payable of approximately $510,000 and no amount was held
in reserve for expenses.
There is no Royalty income for the month of March from the Jay
Field, South Pass 89 or Offshore Louisiana properties. Excess
production costs incurred through March 2009 to be recouped from
future proceeds at the Jay Field, South Pass 89 and Offshore
Louisiana properties totaled $9,965,223, $33,026 and $2,668,806
respectively.
Gross Proceeds prior to deductions for Production Costs for the
month of March 2009 by property were as follows: $0 for Jay Field
property, $147,202 for South Pass 89 property, and $0 for Offshore
Louisiana property.
Production Costs for the month of March 2009 by property are as
follows: $984,219 for Jay Field property, ($12,238) for South Pass
89 property and ($424,768) for Offshore Louisiana property. The
working interest owner has informed the Trustee that the negative
Production Costs at South Pass 89 and Offshore Louisiana result
from the working interest owner�s reversal of certain charges made
in prior months. The working interest owner has also informed the
Trustee that charges for lease operating expenses at South Pass 89
for the last two production months have not yet been paid and
therefore have not been included in Production Costs. The expenses
will be included when paid.
As previously announced, the Trustee has received a letter from
Quantum Resources Management LLC addressed to all Jay Field royalty
interest owners stating that Quantum had temporarily suspended
production from the Jay Field on December 22, 2008. The letter
stated that Quantum's decision to suspend production resulted from
the dramatic decline in oil prices coupled with high operating
expenses.
In March 2009 there was $56,763 released from the Offshore
Louisiana Property Special Cost Escrow for plugging and abandonment
costs.
The Fee Lands Royalties for the month of March 2009 were
$4,342.
The Gross Proceeds, Production Costs and Special Cost Escrow
numbers stated above relate to each property as a whole. The
Trust�s interest in these properties is 50% for Jay Field, 50% for
South Pass 89 and 90% for Offshore Louisiana.
The Trust�Agreement provided that the Trust must terminate in
the event that net revenues, calculated as required by the Trust
Agreement, are below $5,000,000 for two successive years. Net
revenues for 2007 were approximately $2.0 million, and net revenues
for 2006 were approximately $2.1 million. Consequently, the Trust
terminated effective December�31, 2007.
As a result of the termination of the Trust, the Trustee
retained an investment banking firm to manage the sale of the
Trust�s assets. However, on October 23, 2008 the Trust announced
that it had postponed the sale of its assets in light of market
conditions. The Trustee reviews market conditions frequently, and
intends to recommence the marketing process as soon as
practicable.
In accordance with the documents governing the Trust, if any
asset required to be sold has not been sold by December 31, 2010,
the Trustee will cause the asset to be sold at public auction to
the highest cash bidder. The Trustee is required to mail notice of
any such public auction to all Unit holders at least 30 days prior
to any such auction. Except in connection with any proposed
non-cash sale, no approval of the Unit holders will be required in
connection with the sale of the Trust�s assets.
Subject to limitations set forth in the Trust Agreement, the
Trustee is authorized to borrow funds if necessary to pay expenses
of the Trust. If permitted, any such borrowings may be on a secured
or unsecured basis. The Trustee is authorized by the Trust
Agreement to borrow any such funds from itself or from any other
person; however, no assurance can be given that the Trustee will be
able to borrow money on terms the Trust considers reasonable or at
all.
This press release contains statements that are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements contained in this press
release, other than statements of historical facts, are
"forward-looking statements" for purposes of these provisions.
These forward-looking statements include the amount and date of any
anticipated distribution to unit holders and all statements
regarding the future status and termination of the Trust. An
investment in Units issued by LL&E Royalty Trust is subject to
the risks described in the Trust's Annual Report on Form 10-K for
the year ended December 31, 2007, and all of its other filings with
the Securities and Exchange Commission. The Trust's annual,
quarterly and other filed reports are available over the Internet
at the SEC's web site at http://www.sec.gov.
L L E Royal TR Ubi (NYSE:LRT)
Historical Stock Chart
From Nov 2024 to Dec 2024
L L E Royal TR Ubi (NYSE:LRT)
Historical Stock Chart
From Dec 2023 to Dec 2024