Pacific Coast Oil Trust Announces There Will Be No February Cash Distribution

PACIFIC COAST OIL TRUST (NYSE:ROYT) (the “Trust”), a royalty trust formed by Pacific Coast Energy Company LP (“PCEC”), announced today that there will be no cash distribution to the holders of its units of beneficial interest of record on February 18, 2020 based on the Trust’s calculation of net profits generated during December 2019 (the “current month”) as provided in the conveyance of net profits interests and overriding royalty interest. All information in this press release has been provided to the Trustee by PCEC.

The current month’s distribution calculation for the Developed Properties resulted in $1.4 million of revenues less direct operating expenses and development costs. Revenues from the Developed Properties were $3.5 million, lease operating expenses including property taxes were $2.0 million, development costs were approximately $29,000 and capitalized maintenance costs were $1.4 million. The average realized price for the Developed Properties was $63.55 per Boe in December, as compared to $61.09 per Boe in November. Income from the net profits interest for the Developed Properties for the month of December was approximately $32,000.

Revenues for the Remaining Properties for the month of December were $1.3 million less direct operating expenses including production taxes of $0.5 million and approximately $13,000 of development costs. The current month’s calculation for the Remaining Properties was further reduced by $2.0 million for the 2020 re-drill program, which resulted in a net deficit of $1.3 million for the month of December. Because costs for the Remaining Properties in the current month exceeded gross proceeds, the current month’s distribution calculation included approximately $95,000 of proceeds from the 7.5% overriding royalty interest on the Remaining Properties from Orcutt Diatomite and Orcutt Field. Average realized prices for the Remaining Properties were $61.34 per Boe in December, as compared to $58.91 per Boe in November.

The monthly operating and services fee of approximately $109,000 payable to PCEC, which included approximately $16,000 of funds advanced to the Trust in prior months for the payment of the operating and services fee, plus letter of credit fees for the third and fourth quarters of 2019 of approximately $46,000 and Trust general and administrative expenses of $165,000, together exceeded the distribution of approximately $126,000 received from PCEC from the 80% net profits interest on the Developed Properties and the 7.5% overriding royalty interest on the Remaining Properties, creating a shortfall of approximately $195,000.