| U.S. Royalty Trusts |
| U.S. Royalty Trusts are another 'pass through' vehicle available to get income from the corporation to the individual with only 1 level of taxation (the individual income tax). In General ---US Royalty Trusts have no employees ---US Royalty Trusts generally own no land or any other asset excepting the right to receive a percentage of either revenues or profits from a production asset that someone else owns. ---US Royalty Trusts generally have a finite life---either measured in time (years) or volumes (i.e. a certain amount of oil or gas) or in some cases they terminate upon deaths of certain named individuals. NOTE that the Trusts DO NOT own the properties that are producing--they simply collect royalties and distribute them. Production from wells may or may not be have been hedged when the trust was formed. Listed below is our Master List of U.S Royalty Trusts. The trusts listed below trade on the various exchanges in the United States. U.S. Royalty Trusts trade on the basis of income--as such it is important to check not only todays yield, but more importantly what the yield will be or is projected to be in the future. The price of Oil and Gas drive the payouts so as oil and gas fall and rise the payouts change month to month. UNDERSTAND THE TERMS OF THE TRUST. On most of the trust websites you can find the terms of the trust. Trusts have various terms---a certain length of time---or a certain number of years after the death of certain parties. Most of these issues pay a monthly payout--and as such the yield can move every month. Yields shown are the most recent dividend extrapolated to 12 months or 4 quarters. |
| These are NOT recommended purchases, but are just informational. You must do additional due diligence to find investments suitable to your needs and style. A Short Recap of Each Trust is shown on the bottom of this page. Clicking on the ticker symbol takes you to the company website (if their is no website it will take you to a SEC filing) Distributions Updated Daily NOTE--THE SEGMENT BREAKDOWN (OF OIL/NAT GAS) IS APPROXIMATE and CHANGES UP OR DOWN WITH THE PRICE OF GAS AND OIL. ALSO NATURAL GAS INCLUDES NAT GAS LIQUIDS |
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| BP Prudhoe Bay Royalty Trust NYSE:BPT BP Prudhoe Bay Royalty Trust operates as a grantor trust. The company holds overriding royalty interests constituting a non-operational interest in minerals in the Prudhoe Bay oil field located on the North Slope in Alaska. The Prudhoe Bay field extends approximately 12 miles by 27 miles containing approximately 150,000 productive acres. As of December 31, 2006, its estimated, net remaining proved reserves were 81.08 million barrels of oil and condensate, of which 69.02 million barrels were proved and developed reserves, and 12.06 million barrels were proved undeveloped reserves. The company was founded in 1989 and is based in New York, NY. Trust Termination In general the trust will end when 60% of unitholders vote to end it OR when net revenue from Royaties is less than $1,000,000 per year for 2 consecutive years (2011 net income was approximately $200 million) The Trust Document is here |
| Dominion Resources Black Warrior Trust NYSE:DOM Dominion Resources Black Warrior Trust operates as a grantor trust in the United States. It acquires and holds overriding royalty interests burdening proved natural gas properties located in the Pottsville coal formation of the Black Warrior basin, Tuscaloosa County, and Alabama, which are owned by Dominion Black Warrior Basin, Inc. As of December 31, 2006, the company's properties comprised approximately 34,212 gross acres of land that contained 532 gas producing wells. The company was founded in 1994 and is based in Dallas, TX Trust Termination The trust is somewhat complex. The trust may be terminated by a affirmative vote of 2/3rds of the unitholders Additionally it may be terminated if the Royalties received are less than 1.2 times the administrative costs of the trust for 2 consecutive quarters. There are added terms that could end the trust, but they are quite complex. On May 19, 2011 Trustee estimates 5-7 Years remaining (2016-2018) Trust Document |
| Cross Timbers Royalty Trust NYSE:CRT Cross Timbers Royalty Trust operates an express trust in the United States. The company holds 90% net profits interests in various producing and nonproducing royalty and overriding royalty interest properties in Texas, Oklahoma, and New Mexico. It also holds 75% net profits interests in certain nonoperated working interest properties in Texas and Oklahoma. Cross Timbers Royalty Trust was founded in 1991 and is based in Dallas, TX Trust Termination In general the trust will terminate upon the affirmation of 80% of the unit holders. Additionally the trust will move to liquidation if gross revenues of the trust are less than 1 million dollars for 2 years in a row. The royalty interests will be sold (for cash) and the proceeds distributed to unit holders Gross trust revenue for 2011 was $18,400,000 The Trust Offering Prospectus is here |
| Eastern American Nat Gas Trust NYSE:NGT Eastern American Natural Gas Trust engages in acquiring and holding net profits interests in producing gas wells and proved development well locations. It holds net profits interests created from the working interests owned by Eastern American Energy Corporation in 650 producing gas wells and 65 proved development well locations in West Virginia and Pennsylvania. The company was founded in 1993 and is based in Austin, TX NOTE - this trust is scheduled to end between 5/2012 and 5/2013. Between these dates the Trustee is required to sell the Royalty interests and terminate the trust. This Trust included at the IPO a $20/share interest in a US Govt Zero Coupon Treasury Obligation which matures in May 2013. Thus the value of this trust is $20 plus the value of the remaining dividend stream plus the value of the Royalty interest at termination (Obviously this means it is over $20/Unit) The Trust Terms are here within the latest 10K |
| LL and E Royalty Trust Trust to Liquidate LL&E Royalty Trust owns net overriding royalty interests, which are equivalent to net profits interests, in certain productive oil and gas properties located in Alabama, Florida; and in federal waters offshore Louisiana. It also owns 3% royalty interests in approximately 400,000 acres of unleased, undeveloped south Louisiana fee lands. L&E Royalty Trust was created pursuant to a Trust Agreement between The Louisiana Land and Exploration Company and First City National Bank of Houston in 1983. The company is based in Austin, TX |
| Hugoton Royalty Trust NYSE:HGT WARNING WARNING - Likely to Suspend (or severely cut) Distributions in July/August, 2012 Hugoton Royalty Trust operates an express trust in the United States. The company holds 80% net profits interests in certain natural gas producing working interest properties, owned and operated by XTO Energy, Inc. XTO Energy engages in the production and sale of oil and gas in the Hugoton area of Oklahoma and Kansas, the Anadarko Basin of western Oklahoma, and the Green River Basin of southwestern Wyoming. As of December 31, 2011, the company owned interests in 407,987 gross producing acreage of developed property, as well as in 41 gross oil producing wells and 1527 gross gas producing wells. XTO Energy had proved reserves of 420,452 Mcf of gas and 3,838 Bbls of oil. Hugoton Royalty Trust was founded in 1998 and is based in Dallas, Texas. Hugoton Royalty Trust (NYSE:HGT) operates independently of XTO Energy Inc. as of May 12, 2006. Trust Termination This Trust will end when 80% of trust units vote to end the trust---or when gross proceeds from the properties falls below 1 million dollars for 2 consecutive years. (Trust income for 2011 was $55,000,000) Trust Document |
| Marine Petroleum Trust Nasdaq:MARPS Marine Petroleum Trust, through its subsidiary, Marine Petroleum Corporation, operates as a royalty trust in the United States. It holds a 0.0075 overriding royalty interest in oil, natural gas, and other mineral leasehold interests located in the Gulf of Mexico acquired by Chevron U.S.A., Inc. The company, through its 32.6% interest in Tidelands Royalty Trust �B', owns interests in the oil, natural gas, or other mineral leases acquired by Gulf Oil Corporation and/or its transferees and assignees in a 1,370,000-acre area of the Gulf of Mexico. Marine Petroleum Trust was founded in 1956 and is based in Dallas. Trust Scheduled to End 6/01/2021 Company FAQ's and Information |
| Mesa Royalty Trust NYSE:MTR Mesa Royalty Trust holds royalty interests in oil and gas properties primarily located in the United States. The trust owns 90% net profits over-riding royalty interest in the oil and gas properties located in the Hugoton field of Kansas; the San Juan Basin field of New Mexico and Colorado; and the Yellow Creek field of Wyoming. Mesa Royalty Trust is based in Austin, TX. NOTE that the vast majority of income in this trust is from Natural Gas and Nat Gas Liquids. Trust Termination The Trust will terminate upon the first to occur of the following events: (i) at such time as the Trust's royalty income for two successive years is less than $250,000 per year or (ii) a vote by the unitholders in favor of termination. Royalty income of the Trust was $6,661,178 and $6,686,481 for the years 2011 and 2010, respectively. Upon termination of the Trust, the Trustee will sell for cash all the assets held in the Trust estate and make a final distribution to unitholders of any funds remaining after all Trust liabilities have been satisfied. |
| Permian Basin Trust NYSE:PBT Permian Basin Royalty Trust holds overriding royalty rights in mineral properties in the United States. It holds a 75% net overriding royalty interest in Waddell Ranch Properties located in Crane County, Texas; and a 95% net overriding royalty interest in Texas Royalty Properties in Texas. The company was founded in 1980 and is based in Dallas, Texas. Permian Basin Royalty Trust operates as a subsidiary of Burlington Resources Oil & Gas Company LP. |
| Sabine Royalty Trust NYSE:SBR Sabine Royalty Trust receives a distribution of royalty and mineral interests from Sabine Corporation. These royalty and mineral interests primarily include landowner's royalties, overriding royalty interests, minerals, production payments, and other similar, nonparticipatory interest, in certain producing and proved undeveloped oil and gas properties located in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. The trust was founded in 1982 and is based in Dallas, Texas. Trust Ending Dates/Conditions Trust will end when gross revenue for 2 consecutive years is less than $2,000,000 (gross royalties for 2011 were $61,000,000) and/or a vote by a majority of the unitholders to sell the assets. At termination the assets will be sold and the proceeds distributed to the unitholders |
| San Juan Basin Royalty Trust NYSE:SJT San Juan Basin Royalty Trust operates as an express trust. The company has 75% net overriding royalty interest carved out of Burlington Resources Oil& Gas Company LP's oil and gas leasehold and royalty interests in properties located in the San Juan Basin of northwestern New Mexico. It has working interests, royalty interests, overriding royalty interests, and other contractual rights in 151,900 gross producing acres in San Juan, Rio Arriba, and Sandoval Counties of northwestern New Mexico and 4,616 gross economic wells, including dual completions. San Juan Basin Royalty Trust was founded in 1980 and is based in Fort Worth, TX Trust Termination This Trust will end when 75% of unitholders vote to end it--OR when gross income is less than $1,000,000 per year for 2 consecutive years. At termination the royalty interests will be sold and the proceeds distributed to the unitholders Net income attributable to common units was 67.000,000 in 2011 |
| Santa Fe Energy Trust Assets Sold as of 2/15/2008--Trust Liquidated |
| Torch Energy Royalty Trust NYSE:TRU Caution - Trust Liquidating Torch Energy Royalty Trust, a grantor trust, holds net profits interests, to receive payments from Torch Royalty Company and Velasco Gas Company, Ltd. Net profits interests entitle the trust to receive 95% of the net proceeds attributable to oil and gas produced and sold from wells on the underlying properties. These underlying properties include Chalkley Field in Cameron Parish, Louisiana; Robinson's Bend Field in the Black Warrior Basin of Alabama; Cotton Valley Fields in Texas; and Austin Chalk Fields in Central Texas. The company was founded in 1993 and is based in Wilmington, Delaware. |
| The Yield Hunter Let's Make some money and sleep well at night In our 7th Year |
| Chesapeake Granite Wash Trust NYSE:CHKR Chesapeake Granite Wash Trust is a Delaware statutory trust formed in June 2011 to own (a) royalty interests to be conveyed to the trust by Chesapeake in 69 existing horizontal wells in the Colony Granite Wash play located in Washita County in western Oklahoma (the “Producing Wells”), and (b) royalty interests in 118 horizontal development wells (calculated as described under “—The Development Wells” beginning on page 4) to be drilled exclusively in the Colony Granite Wash (the “Development Wells”) on properties within an Area of Mutual Interest (as such area may be extended as described below, the “AMI”). The AMI is limited to only the Colony Granite Wash formation and is depicted by the area identified in the inside front cover of this prospectus, currently consisting of approximately 45,400 gross acres (28,700 net acres) held by Chesapeake. The Colony Granite Wash is a formation encountered at depths between approximately 11,500 feet and 13,000 feet that lies between the top of the Des Moines formation (or top of Colony Granite Wash ‘A’) and the top of the Prue formation (or base of Colony Granite Wash ‘C’). Chesapeake intends to drill, or cause to be drilled, the Development Wells from proved undeveloped (“PUD”) drilling locations in the AMI by June 30, 2015 and is obligated to complete such drilling by June 30, 2016 NOTE THAT THIS TRUST ENDS JUNE 30, 2031 In normal circumstances this trust will end on the above date and the term royalties will revert to Chesapeake Energy and the Perpetual Royalties will be sold and the proceeds paid to the unitholders The Trust Document is here |
| SandRidge Mississippian Trust I NYSE:SDT SandRidge Mississippian Trust I is a Delaware statutory trust formed in December 2010 to own (a) royalty interests to be conveyed to the trust by SandRidge in 37 horizontal wells producing from the Mississippian formation in Alfalfa, Garfield, Grant, Major and Woods counties in Oklahoma (the “Producing Wells”), and (b) royalty interests in 123 horizontal development wells to be drilled in the Mississippian formation (the “PUD Wells” or “development wells”) within an “Area of Mutual Interest,” or “AMI,” as identified on the inside front cover of this prospectus. SandRidge presently holds approximately 64,200 gross acres (42,900 net acres) in the AMI. SandRidge is obligated to drill, or cause to be drilled, the PUD Wells from drilling locations in the AMI by December 31, 2014. Until SandRidge has satisfied its drilling obligation, it will not be permitted to drill and complete any well on lease acreage included within the AMI for its own account Trust Termination The trust will dissolve and begin to liquidate on the Termination Date, which is December 31, 2030, and will soon thereafter wind up its affairs and terminate. At the Termination Date, 50% of the PDP Royalty Interest and 50% of the PUD Royalty Interest will revert automatically to SandRidge. The remaining 50% of each of the PDP Royalty Interest and the PUD Royalty Interest will be retained by the trust at the Termination Date and thereafter sold, and the net proceeds of the sale, as well as any remaining trust cash reserves, will be distributed to the unitholders pro rata. SandRidge will have a right of first refusal to purchase the royalty interests retained by the trust at the Termination Date. |
| Mesabi Royalty Trust NYSE:MSB Mesabi Trust is a royalty trust organized under the laws of the State of New York in 1961 to derive income from an iron mine (the Peter Mitchell Mine) located near Babbitt, Minnesota, at the eastern end of the Mesabi Iron Range. Under various agreements the mine is operated by Northshore Mining Company (“Northshore”), a subsidiary of Cleveland-Cliffs Inc. (“CCI”). Northshore mines the ore, which is in the form of taconite, a hard rock containing approximately 21% recoverable iron, crushes it, separates the iron particles from the non-metallic, and forms the resulting concentrate into pellets which are shipped for use in steel-producing blast furnaces of customers of CCI, an international mining company, the largest producer of iron ore pellets in North America. Trust Termination The Agreement of Trust has a duration ending 21 years after the death of the last survivor of 25 individuals living at the inception of the Trust, all of whom are named in an exhibit to the Agreement of Trust and were alive several years ago when the Trustees investigated this matter. The Amendment of Assignment has a duration ending when the reserves of minerals which are the subject of that agreement are exhausted. Website with EXACT details of Trust |
| Great Northern Iron Ore NYSE:GNI Caution--Trust Ends 4/6/2015 Great Northern Iron Ore Properties ("Trust" or "GNIOP") is a conventional nonvoting trust organized under the laws of the State of Michigan pursuant to a Trust Agreement dated December 7, 1906. The Trust owns interests in fee, both mineral and nonmineral lands, on the Mesabi Iron Range in northeastern Minnesota. The Trust's properties, which span two counties (St. Louis and Itasca) in northeastern Minnesota, extend from Hoyt Lakes on the east end of the Mesabi Iron Range to Grand Rapids on the west end of the Mesabi Iron Range. Many of these properties are leased to steel and mining companies that mine the mineral lands for taconite iron ore. The Trust has no subsidiaries. With the properties and offices all located in Minnesota, the Trust and matters affecting the Trust are under the jurisdiction of the Ramsey County District Court in Saint Paul, Minnesota NOTE---as of 1/1/2013 we believe the top value for these units is $40 |
| Whiting USA Trust I NYSE:WHX Caution - Trust Expected to End in 2015 Whiting USA Trust I was formed in October 2007, by Whiting Petroleum Corporation. Whiting Petroleum Corporation’ s wholly-owned subsidiaries, Whiting Oil and Gas Corporation and Equity Oil Company, conveyed a term net profits interest to the trust that represented the right to receive 90% of the net proceeds from Whiting’s interests in certain existing oil and natural gas producing properties. Trust Termination The net profits interest will entitle the trust to receive 90% of the net proceeds from the sale of production of oil, natural gas and natural gas liquids attributable to the underlying properties until the time when 9.04 MMBOE have been produced from the underlying properties and sold (which amount is the equivalent of 8.14 MMBOE in respect of the trust’s right to receive 90% of the net proceeds from such reserves pursuant to the net profits interest). As of March 1, 2011, 4.25 MMBOE or 47% of the 9.11 MMBOE had been produced and $10.15 per unit had been distributed to unitholders. IMPORTANT NOTE There is no residual royalty to be sold when this trust terminates---as of 3/19/2012 this trust is dramatically overpriced Terms of Trust |
| MV Oil Trust NYSE:MVO MV Oil Trust was formed in August 2006, by MV Partners, LLC, Immediately prior to the closing of this offering, MV Partners will convey a term net profits interest to the trust that represents the right to receive 80% of the net proceeds (calculated as described below) from all of MV Partners' interests in oil and natural gas properties as of the date of the conveyance of the net profits interest to the trust, which we refer to as the "net profits interest." These properties are located in the Mid-Continent region in the States of Kansas and Colorado. We refer to MV Partners' net interests in such properties, after deduction of all royalties and other burdens on production thereon as of the date of the conveyance of the net profits interest to the trust, as the "underlying properties." As of June 30, 2006, the underlying properties produced predominantly oil from approximately 985 wells, and the projected reserve life of the underlying properties was in excess of 50 years. Original Offering Propectus |
| ECA Marcellus Trust I NYSE:ECT The trust owns term and perpetual royalty interests in natural gas properties owned by Energy Corporation of America (“ECA”) in the Marcellus Shale formation in Greene County, Pennsylvania. These royalty interests entitle the trust to receive 90% of the proceeds attributable to ECA’s interest in the sale of production from 14 horizontal Marcellus Shale natural gas wells located in Greene County, Pennsylvania and 50% of the proceeds attributable to ECA’s interest in the sale of production from 52 horizontal Marcellus Shale natural gas development wells that have been or will be drilled on drill sites included within approximately 9,300 acres held by ECA, of which it owns substantially all of the working interests, in Greene County, Pennsylvania. Of these 52 horizontal Marcellus Shale natural gas development wells, 26.83 (calculated as provided in the Development Agreement) have been drilled as of February 28, 2011. The trust is treated as a partnership for federal income tax purposes. Trust Termination Trust is scheduled to end April 1, 2030 Trust Terms Within Registration Statement |
| Enduro Royalty Trust NASDAQ:NDRO Enduro Royalty Trust is a Delaware statutory trust formed by Enduro Resource Partners to own a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from certain of Enduro Resource Partners’ properties in the States of Texas, Louisiana and New Mexico. Trust Termination The trust will dissolve upon the earliest to occur of the following: (1) the trust, upon the approval of the holders of at least 75% of the outstanding trust units, sells the Net Profits Interest, (2) the annual cash available for distribution to the trust is less than $2 million for each of any two consecutive years, (3) the holders of at least 75% of the outstanding trust units vote in favor of dissolution or (4) the trust is judicially dissolved. Trust Terms |
| VOC Energy Trust NYSE:VOC VOC Energy Trust is a Delaware statutory trust formed in November 2010 by VOC Sponsor to own a term net profits interest representing the right to receive 80% of the net proceeds (calculated as described below) from production from substantially all of the interests in oil and natural gas properties in the states of Kansas and Texas held by VOC Sponsor as of the date of the conveyance of the net profits interest to the trust. We refer to the conveyed interest as the “Net Profits Interest.” Trust Termination The Net Profits Interest will terminate on the later to occur of (1) December 31, 2030, or (2) the time when 10.6 MMBoe have been produced from the Underlying Properties and sold (which amount is the equivalent of 8.5 MMBoe in respect of the trust’s right to receive 80% of the net proceeds from the Underlying Properties pursuant to the Net Profits Interest), and the trust will wind up its affairs and terminate. THERE IS NO RESIDUAL ROAYLTY TO BE SOLD AT TERMINATION--IT REVERTS BACK TO VOC ENERGY Terms of Trust |
| Sandridge Permian Trust NYSE:PER SandRidge Permian Trust is a Delaware statutory trust formed to own royalty interests to be conveyed to the trust by SandRidge in (a) 509 producing wells, including 13 wells currently awaiting completion (the "Producing Wells"), and (b) 888 development wells to be drilled (the "Development Wells") within an "Area of Mutual Interest," or "AMI." The AMI consists of the Grayburg/San Andres formation in the Permian Basin in Andrews County, Texas on the acreage identified on the inside front cover of this prospectus. SandRidge presently holds approximately 16,800 gross acres (15,900 net acres) in the AMI. SandRidge is obligated to drill, or cause to be drilled, the Development Wells from drilling locations in the AMI on or before March 31, 2016 Trust Termination The trust will dissolve and begin to liquidate on the Termination Date, which is March 31, 2031, and will soon thereafter wind up its affairs and terminate. At the Termination Date, 50% of the PDP Royalty Interest and 50% of the Development Royalty Interest will revert automatically to SandRidge. The remaining 50% of each of the PDP Royalty Interest and the Development Royalty Interest will be retained by the trust at the Termination Date and thereafter sold, and the net proceeds of the sale, as well as any remaining trust cash reserves, will be distributed to the unitholders in accordance with their interests. SandRidge will have a right of first refusal to purchase the royalty interests retained by the trust at the Termination Date. Trust Offering Prospectus (includes Trust Terms) |
| Whiting USA Trust II NYSE:WHZ The trust is a statutory trust created under the Delaware Statutory Trust Act in December 2011. The business and affairs of the trust will be managed by The Bank of New York Mellon Trust Company, N.A. as trustee. Whiting has no ability to manage or influence the operations of the trust. In addition, Wilmington Trust, National Association will act as Delaware trustee of the trust. The Delaware trustee will have only minimal rights and duties as are necessary to satisfy the requirements of the Delaware Statutory Trust Act. In connection with the completion of this offering, Whiting Petroleum Corporation’s wholly-owned subsidiary, Whiting Oil and Gas Corporation, will convey the term net profits interest to the trust in consideration for the issuance by the trust of 18,400,000 trust units, which will be distributed as a dividend to Whiting Petroleum Corporation. The first quarterly distribution is expected to be made on or prior to May 30, 2012 to trust unitholders owning trust units on May 20, 2012. The trust’s first quarterly distribution will consist of an amount in cash paid by Whiting equal to the amount that would have been payable to the trust had the net profits interest been in effect during the period from January 1, 2012 through the day prior to close of this offering plus the amount payable under the net profits interest for the period from the day of closing of the offering through March 31, 2012, less any general and administrative expenses and reserves established for the benefit of the trust. Trust Termination The net profits interest will entitle the trust to receive 90% of the net proceeds from the sale of production of oil, natural gas and natural gas liquids attributable to the underlying properties until the later to occur of (1) December 31, 2021, or (2) the time when 11.79 MMBOE have been produced from the underlying properties and sold (which is the equivalent of 10.61 MMBOE in respect of the trust’s right to receive 90% of the net proceeds from such reserves pursuant to the net profits interest). IMPORTANT NOTE There is no residual royalty to be sold when this trust terminates Registration Statement |
| SandRidge Mississippian Trust II NYSE:SDR SandRidge Mississippian Trust II is a Delaware statutory trust formed in December 2011 to own (a) overriding royalty interests to be conveyed to the trust by SandRidge in 67 producing horizontal wells, including 13 wells currently awaiting completion (the "Producing Wells"), in the Mississippian formation in northern Oklahoma and southern Kansas, and (b) overriding royalty interests in 206 horizontal development wells (calculated as described under "—The Development Wells") to be drilled in the Mississippian formation (the "Development Wells") on properties within an Area of Mutual Interest (the "AMI"). The AMI, which is limited to the Mississippian formation and consists of approximately 81,200 gross acres (53,000 net acres) held by SandRidge, is depicted by the area identified on the inside front cover of this prospectus. The top of the Mississippian formation is encountered at depths between approximately 4,000 feet and 7,000 feet and lies stratigraphically between the Pennsylvanian-aged Morrow formation and the Devonian-aged Woodford Shale formation. SandRidge intends to drill, or cause to be drilled, the Development Wells in the AMI by December 31, 2015 and is obligated to complete such drilling by December 31, 2016. Until SandRidge has satisfied its drilling obligation to the trust, it will not be permitted to drill and complete any wells for its own account within the AMI. Estimated revenue is approximately 85% Oil and 15% Natural Gas Trust Termination The trust will dissolve and begin to liquidate on the Termination Date, which is December 31, 2031, and will soon thereafter wind up its affairs and terminate. At the Termination Date, the Term Royalties will revert automatically to SandRidge. The Perpetual Royalties will be retained by the trust at the Termination Date and thereafter sold, and the net proceeds of the sale, as well as any remaining trust cash reserves, will be distributed to the unitholders in accordance with their interests. SandRidge will have a right of first refusal to purchase the Perpetual Royalties after the Termination Date. |
| Pacific Coast Oil Trust NASDAQ:ROYT The trust will own interests in properties held by PCEC in California, or the “Underlying Properties,” as of April 1, 2012, the date of the conveyance of the interests to the trust. The Underlying Properties consist of (i) the proved developed reserves as of December 31, 2011 on the Underlying Properties, or the “Developed Properties,” and (ii) all other development potential on the Underlying Properties, or the “Remaining Properties.” The interests will entitle the trust to receive 80% of the net profits from the sale of oil and natural gas production from the Developed Properties. The trust will also be entitled to receive 7.5% of the proceeds (free of any production or development costs but bearing its proportionate share of production and property taxes and post-production costs), or the “Royalty Interest,” attributable to the sale of all oil and gas production from the portion of the Remaining Properties located on PCEC’s Orcutt properties, including but not limited to PCEC’s interest in such production. Alternatively, depending on conditions described elsewhere in this prospectus, the trust will receive instead of payments associated with the Remaining Properties pursuant to the Royalty Interest, or the “Royalty Interest Proceeds,” 25% of the net profits from the sale of oil and natural gas production from all of the Remaining Properties. PCEC expects the trust to receive payments associated with the Royalty Interest Proceeds until approximately 2020. The conveyed net profits interests are together referred to as the “Net Profits Interests.” Original Offering Propectus |
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