Pacific Coast Oil Trust (OTC–ROYTL) announced today that it will not distribute cash to unit holders of record as of June 28, 2024. This decision is based on the Trust’s assessment of net profits generated during April 2024, as outlined in the conveyance of net profits interests and overriding royalty interest. According to Pacific Coast Energy Company LP (PCEC), the entity responsible for providing financial and operational data to the Trust, the Trust’s monthly payments may not be adequate to cover administrative expenses and outstanding debts to PCEC. Consequently, the likelihood of future distributions to unit holders is considered highly improbable.
Regarding the financial performance for April 2024, the Trust reported operating income of approximately $1.6 million from its Developed Properties. Revenues from these properties totaled around $3.4 million, offset by lease operating expenses and property taxes amounting to approximately $1.9 million, along with development costs of approximately $23,000. The average realized price per barrel of oil equivalent (Boe) for the Developed Properties was $83.05 for the month, compared to $75.22 in March 2024. Net profits for the Developed Properties were approximately $1.2 million, reducing the cumulative net profits deficit to about $15.1 million.
In addition, the Trust generated approximately $80,000 from a 7.5% overriding royalty interest on Remaining Properties from Orcutt Diatomite and Orcutt Field. The average realized price for these properties was $80.86 per Boe in April 2024, down from $86.72 per Boe in the previous month. The cumulative net profits deficit for the Remaining Properties decreased slightly to approximately $459,000.
However, the Trust faced financial challenges as the monthly operating and services fee of approximately $113,000 payable to PCEC, combined with general and administrative expenses of approximately $284,000, exceeded the income received from the 7.5% overriding royalty interest on the Remaining Properties by approximately $317,000. This shortfall further underscores the financial strain currently faced by the Trust.
All financial and operational data disclosed in this announcement has been provided to the Trustee by PCEC.
