Pacific Coast Oil Trust Announces There Will Be No February Cash Distribution
PACIFIC COAST OIL TRUST (OTC Pink: ROYTL) (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 26, 2021 based on the Trust’s calculation of net profits generated during December 2020 (the “Current Month”) as provided in the conveyance of net profits interests and overriding royalty interest (the “Conveyance”). If the Trust continues to receive insufficient monthly income from its net profits interests and overriding royalty interest, 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 an operating income of approximately $280,000. Revenues from the Developed Properties were approximately $1.71 million, lease operating expenses including property taxes were approximately $1.42 million, and development costs were approximately $15,000. The average realized price for the Developed Properties was $46.17 per Boe for the Current Month, as compared to $40.11 per Boe in November 2020. Although oil prices have begun to increase since their sharp decline in the first quarter of 2020, prices continued to remain depressed during the Current Month as compared to December 2019. The cumulative net profits deficit amount for the Developed Properties decreased slightly at approximately $25.6 million in the Current Month versus approximately $25.8 million in the prior month.
The Current Month’s calculation included approximately $50,000 generated 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 $43.36 per Boe in the Current Month, as compared to $36.77 per Boe in November 2020. The cumulative net profits deficit for the Remaining Properties decreased by approximately $18,000 and was approximately $2.7 million for the Current Month.
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