Mesa Offshore Trust, Austin, Texas, (OTCBB: MOSH) reports there will be no trust income distribution for March.
Mesa will receive $14,751 in royalty income from the working interest owner for March. On Dec. 18, the working interest owner informed JPMorgan Chase Bank NA, acting as trustee, that there is no longer a deficit balance due for abandonment accrual for amounts expended and for projected future abandonment expenses for the properties in which the trust has an interest.
No royalty income will be distributed to unitholders until JPMorgan Chase recoups trust expenses being paid from the reserve that the trustee has established for anticipated future expenses.
As of March 24, approximately $4.5 million will be withheld by the trustee from future royalty income before trust distributions to the unitholders will resume. Trust expenditures for March will be approximately $114,000.
On Dec. 3, 2007, the trust entered an amended and restated promissory note with JPMorgan Chase as lender. On Aug. 25, 2008, the trustee executed an amended and restated demand note that among other things increased the aggregate principal amount available for borrowing to $4 million. On Jan. 28, the trustee executed an amended and restated demand note that increased the aggregate principal amount available for borrowing to $5 million.
As of March 19, approximately $4.4 million had been advanced to the trustee for trust expenses under this demand note and the trust had unpaid expenses of approximately $115,000.
The extent of future distributions will continue to be dependent on normal factors associated with oil and gas operations such as production levels, prices and associated cost, accruals for future abandonment costs timing and extent of capex.
Mesa operates as a trust company with principal assets in federal waters offshore Louisiana and Texas.
Recommended Reading
Oil, Gas Industry Braces for Storm After Beryl Shifts Toward Houston
2024-07-07 - Chevron and Shell have evacuated offshore platforms as Tropical Storm Beryl could grow into a Category 2 hurricane when it makes landfall in the Houston area on July 8.
Tom Ward: Mach Looks to Other Basins as Midcon Competition Heats Up
2024-07-07 - When other E&Ps were packing up and exiting Oklahoma, Mach Natural Resources went all-in on the Midcontinent. Now Mach CEO Tom Ward says the company is exploring M&A options in other basins as competition and prices creep back up.
Port of Corpus Christi Closes as Tropical Storm Beryl Approaches
2024-07-07 - Port closures could temporarily halt crude oil exports, shipments of crude oil to refineries and motor fuels from those plants.
Energy Transition in Motion (Week of July 5, 2024)
2024-07-07 - Here is a look at some of this week’s renewable energy news, including the latest on hydrogen in aviation.
Mexico’s Nearshoring Attracts $36B in Investment as US Energy Benefits
2024-07-07 - Mexico saw the highest level of foreign investment in 18 years as companies were attracted to low wage workers, but U.S. energy producers, among others, continue to fuel power for the country’s new factories and projects.