VOC Energy : Announces Trust Quarterly Distribution
January 15, 2015 at 09:01 pm
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VOC Energy Trust (NYSE: VOC) announced the Trust distribution of net
profits for the fourth quarterly payment period ended December 31, 2014.
Unitholders of record on January 30, 2015 will receive a distribution
amounting to $1,700,000 or $0.10 per unit, payable February 14, 2015.
Volumes, average sales prices and net profits for the payment period
were:
Sales volumes:
Oil (Bbl)
169,818
Natural gas (Mcf)
135,348
Total (BOE)
192,376
Average sales prices:
Oil (per Bbl)
$
79.48
Natural gas (per Mcf)
$
4.56
Gross proceeds:
Oil sales
$
13,496,959
Natural gas sales
616,928
Total gross proceeds
$
14,113,887
Costs:
Lease operating expenses
$
3,931,147
Production and property taxes
2,179,198
Development expenses
6,385,842
Total costs
$
12,496,187
Net proceeds
$
1,617,700
Percentage applicable to Trust’s Net Profits Interest
80
%
Net profits interest
$
1,294,160
Decrease in cash reserve held by VOC Brazos Energy Partners, L.P.
500,000
Total cash proceeds available for the Trust
$
1,794,160
Provision for estimated Trust expenses
(94,160
)
Net cash proceeds available for distribution
$
1,700,000
VOC Brazos Energy Partners, L.P. previously reported to the Trustee that
it expected the first announced quarterly distribution in 2015 to be
substantially lower than historical distributions. The diminution in the
distribution is primarily the result of increased development expenses
incurred by VOC Brazos associated with its development efforts in the
Kurten Woodbine Unit. If commodity prices for crude oil remain at
substantially reduced levels, VOC Brazos further expects subsequent
distributions in 2015 will also be substantially lower than historical
distributions. VOC Brazos further reported that in addition to the
ongoing historical development of the upper interval of the “EagleBine”
formation within the Kurten Woodbine Unit, it commenced horizontal
development of the lower EagleBine interval and is considering a future
pad drilling strategy in the upper EagleBine interval. Please see
further discussion in the Trust’s Current Report on Form 8-K filed with
the Securities and Exchange Commission on December 22, 2014.
This press release contains forward-looking statements. Although VOC
Brazos Energy Partners, L.P. has advised the Trust that VOC Brazos
Energy Partners, L.P. believes that the expectations contained in this
press release are reasonable, no assurances can be given that such
expectations will prove to be correct. The announced distributable
amount is based on the amount of cash received or expected to be
received by the Trustee from the underlying properties on or prior to
the record date with respect to the quarter ended December 31, 2014. Any
differences in actual cash receipts by the Trust could affect this
distributable amount. Other important factors that could cause these
statements to differ materially include the actual results of drilling
operations, risks inherent in drilling and production of oil and gas
properties, the ability of commodity purchasers to make payment, and
other risk factors described in the Trust’s Form 10-K for the year ended
December 31, 2013 filed with the Securities and Exchange Commission.
Statements made in this press release are qualified by the cautionary
statements made in these risk factors. The Trust does not intend, and
assumes no obligation, to update any of the statements included in this
press release.
VOC Energy Trust (the Trust) is a statutory trust formed by VOC Brazos Energy Partners, L.P. (VOC Brazos). The Trust is managed by The Bank of New York Mellon Trust Company, N.A., as trustee (the Trustee). The Trust is created to acquire and hold the net profits interest for the benefit of the trust unitholders. VOC Brazoâs properties included interests in approximately 739 gross (454.6 net) producing wells and included 81,095 gross (50,310.7 net) acres. The underlying properties are interests in developing properties located in the oil and natural gas producing regions of Kansas and Texas. The fields in the Central Kansas Uplift include Fairport Field, Marcotte Field and Chase-Silica Field. The fields in Western Kansas include the Bindley, Griston SW and Rosa Northwest fields. The fields in South Central Kansas include the Gerberding, Spivey Grabs and Alford fields, which are produced primarily from the Mississippian, Simpson and Lansing Kansas City zones.