LL&E Royalty Trust Announces No Trust Distribution for May 2009
24 Abril 2009 - 9:48AM
Business Wire
LL&E Royalty Trust (NYSE: LRT) announced today that there
will be no Trust income distribution for the month of May 2009 for
Unit holders of record on May 5, 2009. This release relates to
production for the month of February 2009. Trust related expenses
for the month of February 2009 totaled $21,248 while Royalty income
will be $4,826. Trust expenditures in excess of Royalty income
received will reduce the Trust�s reserve for Trust expenses.
There is no Royalty income for the month of February from the
Jay Field, South Pass 89 or Offshore Louisiana properties due to
excess production costs. Excess production costs incurred through
February 2009 to be recouped from future proceeds at the Jay Field,
South Pass 89 and Offshore Louisiana properties totaled $9,567,132,
$286,174 and $3,084,598 respectively.
Gross Proceeds prior to deductions for Production Costs for the
month of February 2009 by property were as follows: $614,106 for
Jay Field property, $94,059 for South Pass 89 property, and $0 for
Offshore Louisiana property.
Production Costs for the month of February 2009 by property are
as follows: $1,074,025 for Jay Field property, $285,874 for South
Pass 89 property and $109,610 for Offshore Louisiana property.
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 February 2009 there was $129,192 released from the Offshore
Louisiana Property Special Cost Escrow for plugging and abandonment
costs.
The Fee Lands Royalties for the month of February 2009 were
$4,826.
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 will terminate in
the event that net revenues, calculated as required by the Trust
Agreement, fell 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 intends to temporarily postpone the sale of its assets in
light of current market conditions. The Trustee will review 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.
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