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MESA COMPLETES DRILLING OF EXPLORATORY WELLS

 MESA COMPLETES DRILLING OF EXPLORATORY WELLS
 HOUSTON, Feb. 4 /PRNewswire/ -- Mesa Offshore Trust (the "trust")


(NYSE: MOS) announced today that it has been advised by Mesa Inc. ("Mesa") that Mesa has completed the drilling of the first of two planned exploratory wells on the South Marsh Island block 155 of the trust's royalty properties.
 The well, which was drilled to a total depth of 11,385 feet, penetrated the objective zone but did not encounter commercial quantities of oil or gas. It was subsequently plugged and abandoned at a cost of approximately $2.4 million ($1.5 million net to the trust). Pending further evaluation, Mesa has advised the trust that the drilling of the second planned exploratory well on the South Marsh Island 155 block has been deferred. Mesa has further advised the trust that it is presently moving the drilling rig from the first well to drill an 11,600 foot development well from the South Marsh Island block 155 "A" Platform at an estimated cost of $4 million ($2.5 million net to the trust). Mesa has advised the trust that drilling of the development well is expected to be completed by April 1992.
 Mesa has advised the trust that the costs of drilling the exploratory well and the development well will significantly impact the amount of royalty income payable to, and therefore the value of, the trust, especially if the second well is also unsuccessful. If the second well is successful, significant additional expenditures will be required in order to complete the well and possibly drill additional wells. Mesa has advised the trust that, based on current estimates of the cost and duration of the drilling program on South Marsh Island block 155, expected future operational expenditures, and the expected level of future proceeds from the royalty properties, Mesa does not expect to complete recovery of all of the costs of such drilling until late 1992 or early 1993 at the earliest. During the period of time Mesa is recovering such costs, the trust will continue to incur routine administrative expenses of up to approximately $650,000 per year for printing and mailing costs, stock exchange listing fees and fees for accounting, engineering, legal and other professional services. No royalty income will be paid to the trust until Mesa recovers the costs of such drilling. In addition, even if payments of royalty income to the trust are resumed, such payments may be insufficient to cover accrued and future trust administrative expenses.
 Separately, on the Brazos A-39 block, a workover was performed on the recently recompleted A-3 well which successfully eliminated excessive water production. The A-3 well is now producing at 7.8 million cubic feet of gas per day, an increase in productive capacity of 4.3 million cubic feet of gas per day. The total cost of the workover was approximately $30,000 ($13,500 net to the trust). In addition, approximately $15,000 net to the trust of costs associated with the successful recompletion of this well in the third quarter of 1991 remained subject to recovery by Mesa at Jan. 31, 1992.
 The trustee has been pursuing various alternatives in anticipation of an extended time period during which no royalty income will be paid to the trust. As previously disclosed, the trust had established certain cash reserves for the payment of trust administrative expenses, which reserves were depleted in December 1991. Due to the lack of royalty income in recent periods and the depletion of such reserves for expenses, the trust is presently unable to pay its ongoing administrative expenses and at Jan. 31, 1992, the trust had a total of approximately $110,000 of outstanding unpaid administrative expenses, approximately $88,000 of which had been due for more than 30 days. One alternative being pursued by the trust is the possibility of borrowing funds on behalf of the trust, using the trust's assets as security, to cover the trust's ongoing administrative expenses until royalty income payments are resumed. At the present time, the trust has been unable to secure such financing. In addition, the trustee is evaluating various ways to reduce trust administrative expenses, including the possibility of transferring the listing of the trust units from the New York Stock Exchange to the Pacific Stock Exchange in order to reduce the amount of listing fees paid by the trust. The trustee is also considering the possibility of reducing administrative costs by having reserve reports for the royalty properties prepared by Mesa instead of DeGolyer and McNaughton, independent petroleum engineering consultants.
 The indenture governing the trust requires the trustee to sell the trust estate if the cash received by the trust falls below certain levels for each of three successive years. Because the cash received by the trust in 1991 was above the threshold level, it is not expected that the indenture would require a sale of the trust estate until at least the end of 1994. The trustee is therefore also considering the possibility of selling the trust estate with the approval of the unitholders. Such a sale would require the approval of at least a majority of the outstanding trust units at a meeting of unitholders called for such purpose. Meetings of the unitholders may be called by the trustee or by unitholders owning at least 10 percent of the outstanding units.
 -0- 2/4/92
 /CONTACT: David Snyder of Texas Commerce Bank, as Mesa Offshore trustee, 713-236-5100/
 (MOS) CO: Mesa Offshore Trust ST: Texas IN: OIL SU:


CK -- NY088 -- 6868 02/04/92 16:26 EST
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Date:Feb 4, 1992
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