KEENE, N.H., Jan. 29, 2021 /PRNewswire/ -- The Trustees
of North European Oil Royalty Trust (NYSE-NRT) announced today a
quarterly distribution of $0.04 per
unit for the first quarter of fiscal 2021, payable on February 24, 2021 to owners of record on
February 12, 2021. Natural gas
sold during the fourth calendar quarter of 2020 is the primary
source of royalty income on which the February 2021 distribution is based.
John R. Van Kirk, Managing
Director, reported that this year's quarterly distribution of
$0.04 per unit is 50.00%, or
$0.04 per unit, lower than the
distribution of $0.08 per unit for
the first quarter of fiscal 2020. For the quarter ending
January 31, 2021, the combination of
lower gas sales and gas prices as well as negative royalty
adjustments totaling $538,651 from
the prior quarter resulted in the lower distribution. The
complete shutdown of Grossenkneten from September 8 to October 13, 2020 in combination
with the continuing impact of COVID-19 on gas sales contributed to
the decline in royalties.
The Trust receives all of its royalties under two royalty
agreements. The Mobil Agreement, which is the higher royalty
rate agreement, covers gas sales from the western half of the
Oldenburg concession. The OEG Agreement, which is the lower
royalty rate agreement, covers gas sales from the entire Oldenburg
concession. The factors determining the amount of gas
royalties payable under the two agreements from the preceding
calendar quarter are shown in the table below comparing the fourth
calendar quarters of 2020 and 2019. Further details will be
included in the earnings press release scheduled for publication on
or about February 12, 2021.
|
Quarterly Gas Data
Providing Basis for Fiscal Quarter Royalties
|
Mobil
Agreement
|
4th
Calendar Quarter
Ended
12/31/2020
|
4th
Calendar Quarter
Ended
12/31/2019
|
Percentage
Change
|
Gas Sales
(Bcf1)
|
3.222
|
4.884
|
- 34.03%
|
Gas
Prices2 (Ecents/kWh3)
|
1.1935
|
1.3550
|
- 11.92%
|
Average Exchange
Rate4
|
1.2116
|
1.1105
|
+
9.10%
|
Gas
Royalties
|
$532,128
|
$843,908
|
- 36.94%
|
|
|
|
|
OEG
Agreement
|
|
|
|
Gas Sales
(Bcf)
|
11.622
|
16.026
|
- 27.48%
|
Gas Prices
(Ecents/kWh)
|
1.2171
|
1.3818
|
- 11.92%
|
Average Exchange
Rate
|
1.2123
|
1.1115
|
+
9.07%
|
Gas
Royalties
|
$160,621
|
$332,242
|
- 51.66%
|
1 Billion
cubic feet 2 Gas prices derived from
August-October period 3 Euro cents per
kilowatt hour
4 Based on average Euro/dollar exchange rates of
cumulative royalty transfers
|
The cumulative 12-month distribution, which includes the
February 2021 distribution and the
three prior quarterly distributions, is $0.28 per unit. This 12-month cumulative
distribution is 58.82% or $0.40 per
unit lower than the prior cumulative 12-month distribution of
$0.68 per unit. The Trust makes
quarterly distributions to unit owners during the months of
February, May, August and November.
Contact – John R. Van Kirk,
Managing Director, telephone: (732) 741-4008, e-mail:
jvankirk@neort.com. The Trust's press releases and other
pertinent information are available on the Trust's website:
www.neort.com.
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SOURCE North European Oil Royalty Trust