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TEL OFFSHORE TRUST ANNOUNCES DISTRIBUTION FOR SECOND QUARTER

 TEL OFFSHORE TRUST ANNOUNCES DISTRIBUTION FOR SECOND QUARTER
 HOUSTON, June 19 /PRNewswire/ -- Tel Offshore Trust (NASDAQ: TELOZ) announced the Trust's quarterly income distribution for the second quarter of 1992. The amount available for distribution will be $38,371.85 or $.008075 per unit. The second quarter distribution will be payable on July 10, 1992, to unit holders of record on June 30, 1992.
 Crude oil revenues for the 1992 second quarter increased 24 percent compared to the first quarter of 1992 due primarily to a 32 percent increase in crude oil and condensate volumes from 166,000 barrels in the 1992 first quarter to 219,000 barrels in the 1992 second quarter offset in part by a decrease in the average price received for crude oil and condensate from $18.13 per barrel in the first quarter of 1992 to $17.11 per barrel in the second quarter of 1992. Gas revenues decreased approximately 56 percent from the first quarter of 1992 to the second quarter of 1992 due in part to an adjustment of approximately $117,000 on the West Cameron 643 property. The adjustment was due to overpayments of royalty income to the trust in prior periods based on payments expected to be received by the working interest owner for gas sold to Columbia Gas during June, July and August of 1991 which were not received by the working interest owner. The decrease in gas revenues was also due in part to a decrease in the average price received for natural gas from $2.01 per Mcf in the 1992 first quarter to $1.22 per Mcf in the second quarter of 1992. The trust's share of operating expenses increased significantly from approximately $216,000 in the 1992 first quarter to approximately $451,000 in the 1992 second quarter primarily due to four successful workovers on the Ship Shoal 182/183 property in the second quarter of 1992. In addition, the trust's share of capital expenditures increased from approximately $19,000 in the 1992 first quarter to approximately $60,000 in the 1992 second quarter primarily due to tubing replacement on three of the above described workovers on the Ship Shoal 182/183 property in the second quarter of 1992.
 Two wells were drilled in the second quarter of 1992 on the Eugene Island 339 property. In April 1992 the operator of the Eugene Island 339 property drilled the B-19 development well on such property. The working interest owner has advised the trust that the drilling was successful and that the well is producing approximately 30,000 barrels of oil per month, the working interest owner's share of which is 7,400 barrels of oil per month. The cost of the B-19 drilling was approximately $150,000 net to the trust. In May 1992 the operator of the Eugene Island 339 property drilled the B-18 delineation well on such property. The working interest owner has advised the trust that the drilling was successful and that preliminary tests performed by the operator of this property indicate that the well is capable of producing approximately 4400 barrels of oil per month and approximately 2150 Mcf of gas per month. The working interest owner's share of this production would be approximately 1100 barrels of oil per month and approximately 540 Mcf of gas per month. The cost of the B-18 drilling was approximately $280,000 net to the trust. In addition, the working interest owner has advised the trust that the operator of the Eugene Island 339 property intends to drill another development well near the end of June 1992. The trust's share of the costs of such drilling is expected to approximate $185,000.
 The current escrow balance, current estimates of aggregate future capital expenditures, aggregate future abandonment costs, aggregate future production costs, aggregate future net revenues and current net proceeds resulted in a deposit of funds into the special cost escrow account in the second quarter of 1992 amounting to $406,000 which significantly reduced distributable income for the period. The deposit was primarily a result of an increase in future estimated abandonment costs of the Royalty Properties and other expenditures projected by the working interest owner. Additional deposits to the special cost escrow account may be required in future periods in connection with drilling projects, other capital expenditures, abandonment costs and changes in the estimates and factors described above.
 -0- 6/19/20
 /CONTACT: Debbie Miller of Texas Commerce Bank National Association, 713-236-5712/
 (TELOZ) CO: Tel Offshore Trust ST: Texas IN: OIL SU: ERN


AH -- NY034 -- 1924 06/19/92 12:28 EDT
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Publication:PR Newswire
Date:Jun 19, 1992
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