LL&E ROYALTY TRUST ANNOUNCES APRIL DISTRIBUTION
LL&E ROYALTY TRUST ANNOUNCES APRIL DISTRIBUTION HOUSTON, March 27 /PRNewswire/ -- LL&E Royalty Trust (NYSE: LRT)
announced today that its monthly distribution to unitholders will be made on April 16, 1992 to unitholders of record on April 6, 1992. This distribution represents amounts payable to the trust with respect to production for the month of January 1992 and the release from escrow of an amount in connection with a long standing issue of potential recapture of intangible drilling and development costs under the Internal Revenue code.
The total amount of the April distribution will be $982,765 or approximately $.05174 per unit. Of this amount $630,013.92, or $.03317 per unit, is due to the previously announced release from escrow. The remaining amount of $352,751 or $.01857 per unit, is from the trust's interest in the Jay Field production. Commencing with the August 1991 distribution month, the working interest owner began escrowing funds for the estimated cost of dismantlement of platforms in the Offshore Louisiana property. The working interest owner's estimate of total dismantlement costs for Offshore Louisiana is $2,500, 000. The total amount of the escrow for the April distribution and the cumulative balance of the escrow are $139,000 and $1,700,000, respectively. (The trust's interest is equivalent to 90 percent of the net proceeds from Offshore Louisiana.) Future distributions, if any, from Offshore Louisiana will only be resumed after estimated dismantlement costs have been fully escrowed. A platform is to be placed on South Pass Block 86 (in which the trust has no interest) which will produce oil and gas from a reservoir underlying both South Pass Block 86 and South Pass Block 89. The costs expended and charged to South Pass Block 89 in the January production month for design and fabrication of the platform amounted to approximately $409,000. After these charges, excess production costs for South Pass Block 89 amounted to approximately $210,000 which will be recouped from future proceeds. The remaining estimated total cost of the platform to be allocated to South Pass Block 89 is approximately $1,700,000. (The trust's interest is equivalent to 50 percent of the net proceeds from South Pass Block 89.) The remaining platform costs and the costs of drilling additional wells will adversely affect revenues to the trust from South Pass Block 89 for several months. However, the timing of the occurrence of the platform costs is not within the control of the working interest owner, and the working interest owner is unable to predict the timing of such costs. The working interest owner has informed the trustee that calculations made, using the most recent reserve report, in accordance with escrow provisions within the trust documents indicate that it is permitted to place funds in escrow for all of the properties in which the trust has an interest. The working interest owner intends to closely monitor each of the aforementioned properties with respect to possible changes in its estimates of relevant factors. The extent of future distributions from Jay Field and South Pass Block 89 will be dependent on normal factors associated with oil and gas operations such as oil and gas production levels and prices, and the timing of capital requirements for the platform and remaining wells to be drilled at South Pass Block 89. -0- 3/27/92 /CONTACT: Roark Ashie of First City, Texas-Houston, N.A., as trustee, 713-658-7639/ (LRT) CO: LL&E Royalty Trust ST: Texas IN: OIL SU: DIV SB -- NY052 -- 2463 03/27/92 15:35 EST
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|Date:||Mar 27, 1992|
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