Pacific Coast Oil Trust Announces There Will Be No May 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 May 18, 2020 based on the Trust’s calculation of net profits generated during March 2020 (the “Current Month”) as provided in the conveyance of net profits interests and overriding royalty interest. If the Trust continues to experience negative monthly net profits, the Trust is expected to terminate by its terms by the end of 2021. As described further below, based on information from PCEC, the likelihood of distributions to the unitholders in the foreseeable future is extremely remote. The Trust may also be terminated upon the occurrence of other events as described in the Trust’s filings with the SEC. All financial and operational 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 $0.4 million of excess operating expenses and development costs. Revenues from the Developed Properties were $1.8 million, lease operating expenses including property taxes were $2.1 million, and development costs were approximately $128,000. The average realized price for the Developed Properties was $30.46 per Boe for the Current Month, as compared to $54.64 per Boe in February 2020, contributing to the significant decrease in revenues. The decline in realized price per Boe is primarily attributable to the decrease in demand for crude oil due to the COVID-19 pandemic and oversupply resulting from the dispute over production levels between Russia and the members of the Organization of Petroleum Exporting Countries, including Saudi Arabia. The cumulative net profits deficit amount for the Developed Properties, which reflects the deduction of the estimated asset retirement obligation (“ARO”) relating to the Developed Properties as discussed in last month’s press release and below under “Update on Estimated Asset Retirement Obligations” of approximately $25.8 million, increased to approximately $25.6 million for the Current Month.