Enduro Royalty Trust Announces Current Wolfcamp Activity and Reports Monthly Cash Distribution
August 19 2014 - 9:15AM
Business Wire
Enduro Royalty Trust (NYSE: NDRO) (the “Trust”) today announced
results from recently completed wells in the Wolfcamp play in the
Midland Basin and reported its monthly cash distribution to be paid
in September 2014.
Wolfcamp Production Results and Activity Update
During June and July, several Wolfcamp wells were completed and
are currently producing. Of the 20 gross well proposals received
from Pioneer Natural Resources to date, 13 wells are currently
producing, 2 are waiting on completion, 2 are drilling, and 3 are
waiting to be spud. The following table displays the 24-hour peak
gross flowback rate for wells that began producing in July and
early August:
Well Name
EnduroWorkingInterest
FirstProduction Date
24-Hour
IPRate(BOE/D)
Rocker B 43H 6.25% 7/25/2014 1,250 Rocker B 45H 6.25%
7/26/2014 957 Rocker B 46H 6.25% 7/13/2014 1,094 Rocker B
47H 6.25% 7/20/2014 528 Rocker B 48H 6.25% 7/12/2014
1,048 Rocker B 72H 12.50% 8/5/2014 1,205 Rocker B 73H
12.50% 7/31/2014 1,121 Rocker B 74H 12.50% 7/31/2014 1,241
The following table displays the current status of the Wolfcamp
wells in progress and those producing wells for which initial
production rates are not yet available and Enduro’s working
interest percentage:
Well Name
Current Status
County &State
EnduroWorkingInterest
Rocker B 44H Producing Reagan, TX 6.25% Rocker B 51H
Waiting on Completion Irion, TX 12.50% Rocker B 52H Waiting
on Completion Irion, TX 12.50% Rocker B 53H Drilling Irion,
TX 12.50% Rocker B 54H Drilling Irion, TX 12.50% Rocker B
60H Waiting to Spud Irion, TX 12.50% Rocker B 61H
Waiting to Spud Irion, TX 12.50% Rocker B 62H Waiting to
Spud Irion, TX 12.50% Rocker B 71H Producing Irion, TX
12.50%
As noted above, there has been significant activity in the
Permian Basin Wolfcamp program during June and July. During the
month of July 2014, 2 Rocker B wells were spud and 9 wells were in
various stages of completion. As a result, significant capital was
invested during those months which impacts the current month
distribution and will impact the September distribution. Enduro
anticipates that cash receipts from the sale of production from
these new wells will be included in distributions during the fourth
quarter when Enduro anticipates increased production.
Monthly Cash Distribution
A cash distribution of $0.037803 per unit will be paid on
September 15, 2014 to the Trust’s unitholders of record on August
29, 2014. The distribution primarily represents oil production
during the month of May 2014 and natural gas production during
April 2014.
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 72,290 418,044 $ 93.01 $ 4.63 Prior Month 78,525
450,004 $ 93.95 $ 4.86
Oil cash receipts for the properties underlying the Trust
totaled $6.7 million for the month, a decrease of $0.7 million from
the prior month due to the inclusion in the prior month of multiple
months of revenue for the first three Rocker B wells. The prior
month included approximately $1.1 million in revenue from those
wells and represented oil production from February, March and April
and natural gas production from February and March.
Natural gas receipts for the properties underlying the Trust
decreased $0.3 million from the prior month, totaling $1.9 million,
as a result of decreased wellhead prices resulting from wider basis
differentials as well as decreased sales volumes due to one less
production day in April and differences in the timing of cash
receipts.
Capital expenditures included in the current month distribution
totaled approximately $3.4 million, which relates to capital
expenditures incurred in June. Approximately $2.4 million of the
capital incurred related to the Wolfcamp activity in the Midland
Basin. Through June, capital incurred for projects in the Wolfcamp
Rocker B program has totaled $10.9 million.
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. Initial production rates may not be
indicative of future production rates and are not indicative of the
amounts of oil and gas that a well may produce. 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 TrusteeSarah Newell, 1-512-236-6555
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