Enduro Royalty Trust (NYSE: NDRO) (the “Trust”) today announced
results from recently completed wells in the Wolfcamp play in the
Midland Basin and reported the net profits interest calculation for
September 2014.
Wolfcamp Production Results and Activity Update
During July and August, 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, 4 are in various stages of completion, and 3
are drilling.
The following table displays the 24-hour peak gross flowback
rate for all Wolfcamp wells that are producing, including the 3
that began producing in August, as well as the 30-day IP rate for
those wells where such information is available:
Well
Name EnduroWorkingInterest
FirstProduction Date
24-Hour
IPRate(BOE/D)
30-Day
IPRate(BOE/D)
Rocker B 40H 25.0% 2/28/2014
880 280 Rocker B 41H 25.0%
2/28/2014 1,320 838
Rocker B 42H 25.0% 2/28/2014
890 429 Rocker B 43H 6.25%
7/25/2014 1,250 1,042
Rocker B 44H 6.25% 8/13/2014
898 Not Available Rocker B 45H
6.25% 7/26/2014 957 737
Rocker B 46H 6.25% 7/13/2014
1,094 667 Rocker B 47H 6.25%
7/20/2014 528 383 Rocker
B 48H 6.25% 7/12/2014
1,048 822 Rocker B 71H 12.50%
8/11/2014 804 Not Available
Rocker B 72H 12.50% 8/5/2014
1,205 Not Available Rocker B 73H
12.50% 7/31/2014 1,121
924 Rocker B 74H 12.50% 7/31/2014
1,241 865
The following table displays the current status of the Wolfcamp
wells in progress and Enduro’s working interest percentage:
Well Name
Current Status
County &State
EnduroWorkingInterest
Rocker B 51H Completing Irion, TX
12.50% Rocker B 52H Completing
Irion, TX 12.50% Rocker B 53H
Completing Irion, TX 12.50% Rocker B
54H Completing Irion, TX
12.50% Rocker B 60H Drilling Irion, TX
12.50% Rocker B 61H Drilling
Irion, TX 12.50% Rocker B 62H
Drilling Irion, TX 12.50%
Monthly Net Profits Interest Calculation
Due to significant activity in the Wolfcamp drilling program
during the month of July 2014, direct operating and development
expenses for the current month net profits interest calculation
exceeded cash receipts. The following displays the net profits
interest calculation for the current month and the resulting
shortfall in net profits:
Gross profits: Oil cash receipts $
6,914,760 Natural gas cash receipts 2,040,983 Total
8,955,743
Costs: Direct operating
expenses: Lease operating expenses 2,624,000 Compression, gathering
and transportation 256,000 Production, ad valorem and other taxes
409,000 Development expenses 6,303,000 Total
9,592,000 Net profits attributable to underlying properties
(636,257 ) Percentage allocable to net profits interest 80 %
Net profits to Trust from net profits interest $ (509,006 )
As a result, no monthly cash distribution will be paid in
October 2014 to the Trust’s unitholders. The shortfall in net
profits will be deducted from the net profits in next month’s net
profits interest calculation, at which time expenses are
anticipated to revert to normal levels and result in net profits
consistent with prior months.
The current month net profits interest calculation primarily
represents oil production during the month of June 2014, natural
gas production during May 2014, and costs incurred in July. As the
majority of the Rocker B wells have started producing since July,
the only Rocker B wells in the Wolfcamp play for which revenues are
included in the above calculation are the Rocker B 40H, 41H, and
42H. Enduro anticipates that cash receipts from the sale of
production from the remaining 10 wells that are currently producing
will be included in distributions during the fourth quarter.
The following table displays underlying oil and natural gas
sales volumes and average prices attributable to the current and
prior month net profits interest calculations.
Underlying Sales
Volumes Average Price Oil
(Bbls)
Natural Gas
(Mcf)
Oil
(per Bbl)
Natural Gas
(per Mcf)
Current Month 71,572 433,786 $ 96.61 $ 4.71 Prior Month 72,290
418,044 $ 93.01 $ 4.63
Oil cash receipts increased $0.2 million from the prior month
and totaled $6.9 million as a result of increased NYMEX prices,
partially offset by a decrease in sales volumes due to one less
production day in June.
Natural gas receipts increased $0.1 million from the prior
month, totaling $2.0 million, as a result of increased wellhead
prices due to improved differentials from NYMEX and increased sales
volumes due to one more production day in May.
Of the total $6.3 million in capital expenditures during July
2014, approximately $4.5 million related to the Wolfcamp activity
in the Midland Basin. Through July, capital incurred for projects
in the Wolfcamp Rocker B program has totaled $15.4 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. Although no distribution
will be made in October 2014, normally 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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