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TEL OFFSHORE TRUST ANNOUNCES QUARTERLY INCOME DISTRIBUTION

 TEL OFFSHORE TRUST ANNOUNCES QUARTERLY INCOME DISTRIBUTION
 HOUSTON, March 20 /PRNewswire/ -- Tel Offshore Trust (NASDAQ: TELOZ) announced the trust's quarterly income distribution for the first quarter of 1992. The amount available for distribution will be $316,319.16, or $.066572 per unit. The first quarter distribution will be payable on April 10, 1992 to unit holders of record on March 31, 1992.
 Crude oil revenues for the 1992 first quarter increased 13 percent compared to the fourth quarter of 1991 due primarily to an 18 percent increase in crude oil and condensate production volumes from 141,000 barrels in the 1991 fourth quarter to 166,000 barrels in the 1992 first quarter offset in part by a decrease in the average price received for crude oil and condensate from $18.85 per barrel in the fourth quarter of 1991 to $18.13 per barrel in the first quarter of 1992. Gas revenues increased approximately 33 percent for the 1992 first quarter due primarily to an increase in natural gas volumes to 877,000 Mcf in the 1992 first quarter compared with 810,000 Mcf in the fourth quarter of 1991 and an increase in the average price received for natural gas from $1.64 per Mcf in the 1991 fourth quarter to $2.01 per Mcf in the first quarter of 1992. The trust's share of capital expenditures decreased significantly to approximately $19,000 in the 1992 first quarter from approximately $200,000 in the 1991 fourth quarter primarily due to completion of platform upgrades on the Ship Shoal 182/183 property in the fourth quarter of 1991. In addition, general and administrative expenses of the trust decreased to approximately $105,000 in the 1992 first quarter from approximately $168,000 in the fourth quarter of 1991, primarily due to increases in insurance costs and additional mailing costs associated with giving notice of the resignation of an individual trustee of the trust and the appointment of a successor individual trustee in the fourth quarter of 1991. In anticipation of future periods when the cash received from the royalty may not be sufficient for payment of trust expenses, the trust has determined, in accordance with the trust agreement, to increase the trust's cash reserve each quarter by an amount equal to the difference between $150,000 and the amount of the trust's general and administrative expenses for such quarter. Accordingly, the trust's cash reserve was increased by approximately $45,000 in the first quarter of 1992, bringing the trust's aggregate cash reserve amount to $165,000.
 Although a release of $200,000 was made from the special cost escrow account in the fourth quarter of 1991, the current escrow balance, current estimates of aggregate future capital expenditures and 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 first quarter of 1992 amounting to $485,000, which significantly reduced distributable income for the period. The deposit is primarily a result of a change in the estimate of future net revenues as a result of a decrease in oil and gas prices during 1991 in addition to the other factors listed above. Additional deposits to the special cost escrow account may be required in the future periods in connection with drilling projects, other capital expenditures, abandonment costs and changes in the estimates and factors described above.
 -0- 3/20/92
 /CONTACT: Debbie Miller of Texas Commerce Bank National Association, as corporate trustee for Tel Offshore Trust, 713-236-5712/
 (TELOZ) CO: Tel Offshore Trust ST: Texas IN: OIL SU: DIV


SH -- NY025 -- 0047 03/20/92 11:03 EST
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Publication:PR Newswire
Date:Mar 20, 1992
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