Enduro Royalty Trust Announces Current Wolfcamp Activity and Reports Monthly Cash Distribution
March 21 2014 - 8:00AM
Business Wire
Enduro Royalty Trust (NYSE: NDRO) (the “Trust”) today announced
results from the first three wells drilled in the Wolfcamp play in
the Midland Basin and reported its monthly cash distribution to be
paid in April 2014.
Wolfcamp Production Results and Activity Update
The Rocker B 40H, 41H, and 42H were completed in early February
with first production reported at the end of February. The 24-hour
peak flow back rate for the Rocker B 41H was approximately 1,320
BOE/D, while the Rocker B 40H and 42H had 24-hour peak rates of 880
BOE/D and 890 BOE/D, respectively. Each of the wells has an oil
content of approximately 65% with an overall liquids content of
approximately 90%.
In early 2014, Enduro received drilling proposals from Pioneer
Natural Resources for the next 4 Wolfcamp wells to be drilled on
the properties underlying the Trust. The Rocker B 43H was spud in
January, the 44H and 45H were spud in February, and the 46H was
spud in March.
The following table displays the current status of the Wolfcamp
wells and Enduro’s working interest percentage:
Well Name
Operator
Current Status
Reservoir
County & State
Enduro
Working Interest
Rocker B 40H Pioneer Producing Wolfcamp Reagan, TX 25.00 % Rocker B
41H Pioneer Producing Wolfcamp Reagan, TX 25.00 % Rocker B 42H
Pioneer Producing Wolfcamp Reagan, TX 25.00 % Rocker B 43H Pioneer
Drilling Wolfcamp Reagan, TX 6.25 % Rocker B 44H Pioneer Drilling
Wolfcamp Reagan, TX 6.25 % Rocker B 45H Pioneer Drilling Wolfcamp
Reagan, TX 6.25 % Rocker B 46H Pioneer Drilling Wolfcamp Reagan, TX
6.25 %
Monthly Cash Distribution
A cash distribution of $0.070692 per unit will be paid on April
14, 2014 to the Trust’s unitholders of record on March 31, 2014.
The distribution primarily represents oil production during the
month of December 2013 and natural gas production during November
2013.
The following table displays underlying oil and natural gas
sales volumes and average prices attributable to the current and
prior month distributions.
Underlying Sales Volumes Average Price
Oil
(Bbls)
Natural Gas
(Mcf)
Oil
(per Bbl)
Natural Gas
(per Mcf)
Current Month 68,239 448,645 $ 91.07 $ 3.80 Prior Month 68,212
453,517 $ 89.71 $ 3.83
Oil cash receipts increased slightly from the prior month and
totaled $6.2 million as a result of increased NYMEX oil prices,
while natural gas cash receipts remained consistent with the prior
month at $1.7 million. Oil and natural gas cash receipts continued
to be affected by the severe winter weather in the Permian Basin
during November and December, which caused downtime that adversely
affected oil and natural gas production volumes in the area. As an
indication of the impact of the severe winter weather, Enduro
estimates that January oil production results to be included in
next month’s distribution calculation are 6% higher than December
production rates shown above. This estimate is prior to the impact
of new production from the Rocker B wells that are currently
producing, as discussed above.
Capital expenditures included in the current month distribution
were approximately $1.7 million, which relates to capital
expenditures incurred in January.
Proceeds from the settlement of hedge contracts for the
properties underlying the Trust were approximately $0.1 million,
which relate to settlements of December 2013 oil hedges. Due to the
terms of the net profits interest, Enduro is prohibited from
entering into any new hedging arrangements burdening the Trust and,
as a result, there will be no further proceeds from natural gas or
oil hedges.
About Enduro Royalty Trust
Enduro Royalty Trust is a Delaware statutory trust formed by
Enduro Resource Partners to own a net profits interest representing
the right to receive 80% of the net profits from the sale of oil
and natural gas production from certain of Enduro Resource
Partners’ properties in the states of Texas, Louisiana and New
Mexico. As described in the Trust’s filings with the Securities and
Exchange Commission, the amount of the periodic distributions is
expected to fluctuate, depending on the proceeds received by the
Trust as a result of actual production volumes, oil and gas prices
and the amount and timing of capital expenditures and the Trust’s
administrative expenses, among other factors. Future distributions
are expected to be made on a monthly basis. For additional
information on the Trust, please visit
www.enduroroyaltytrust.com.
Forward-Looking Statements and Cautionary Statements
This press release contains statements that are “forward-looking
statements” within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. All statements contained in this
press release, other than statements of historical facts, are
“forward-looking statements” for purposes of these provisions.
These forward-looking statements include the amount and date of any
anticipated distribution to unitholders. The anticipated
distribution is based, in part, on the amount of cash received or
expected to be received by the Trust from Enduro Resource Partners
with respect to the relevant period. Any differences in actual cash
receipts by the Trust could affect this distributable amount. Other
important factors that could cause actual results to differ
materially include expenses of the Trust and reserves for
anticipated future expenses. Statements made in this press release
are qualified by the cautionary statements made in this press
release. Neither Enduro Resource Partners nor the Trustee intends,
and neither assumes any obligation, to update any of the statements
included in this press release. An investment in units issued by
Enduro Royalty Trust is subject to the risks described in the
Trust’s filings with the SEC, including the risks described in the
Trust’s Annual Report on Form 10-K for the year ended December 31,
2013, filed with the SEC on March 11, 2014. The Trust’s quarterly
and other filed reports are or will be available over the Internet
at the SEC’s website at http://www.sec.gov.
Enduro Royalty TrustThe Bank of New York Mellon Trust Company,
N.A., as TrusteeMary Jo Davis, 1-713-483-6792
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