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LL&E ROYALTY TRUST ANNOUNCES IT WILL NOT MAKE ITS REGULAR MONTHLY DISTRIBUTION TO UNITHOLDERS

 LL&E ROYALTY TRUST ANNOUNCES IT WILL NOT MAKE ITS REGULAR MONTHLY
 DISTRIBUTION TO UNITHOLDERS
 HOUSTON, April 27 /PRNewswire/ -- LL&E Royalty Trust announced today that it will not be able to make its regular monthly distribution to Unitholders in May. For the reasons described below, revenues from the properties in which the Trust has an interest were limited to approximately $92,000, approximately three-quarters of which came from the Jay field and one-quarter of which resulted from the Fee Lands royalties. Although the revenues were sufficient to enable the trust to pay its administrative expenses, they were not enough to permit a distribution to Unitholders. Details concerning the properties in which the trust has an interest follow.
 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 May distribution and the cumulative balance of the escrow are $125,000 and $1,800,000, 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 February production month for design and fabrication of the platform amounted to approximately $206,000. After these charges, excess production costs for South Pass Block 89 were reduced by about $57,000. Remaining excess production costs to be recouped from future proceeds from South Pass Block 89 totaled approximately $153,000 at the end of the February production month. The remaining estimated total cost of the platform to be allocated to South Pass Block 89 is approximately $1,500,000. (The trust's interest is equivalent to 50 percent of the Net Proceeds from South Pass 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 has elected to escrow funds only with respect to the Offshore Louisiana property at this time. However, the working interest owner intends to continue to closely monitor each of the properties in which the trust has an interest with respect to possible changes in its estimates of relevant factors.
 The extent of future distributions from the properties in which the trust has an interest will continue to be dependent on normal factors associated with oil and gas operations such as oil and gas production levels, prices and associated cost, timing and extent of capital expenditures.
 -0- 4/27/92
 /CONTACT: Roark Ashie of First City, Texas-Houston, N.A., 713-658-7639/
 (LRT) CO: LL&E Royalty Trust ST: Texas IN: OIL SU: DIV


KD -- NY116 -- 3439 04/27/92 17:53 EDT
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Publication:PR Newswire
Date:Apr 27, 1992
Words:608
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