been approved at $1.35 million (gross) for the Waddell Ranch properties. The foregoing capital expenditures budget has been revised since Blackbeard assumed the role of operator of the
Waddell Ranch properties on April 1, 2020. Blackbeards 2020 budget for the remainder of the year will be approximately $7 million for drilling and completion, $3 million for recompletions, plug and abandonments, and
infrastructure of facilities. The additional expenditures should occur later in the year 2020. The total amount of capital expenditures for 2019 with regard to the Waddell Ranch properties totaled $1.35 million (gross).
The Trustee has been advised that there were 5 vertical drill wells started and 3 were completed, 2 new wells in progress and 5 workover wells in progress
during the three months ended September 30, 2020, as compared to 0 workover wells completed, 0 new wells completed, 0 new wells in progress and 0 workover wells in progress for the three months ended September 30, 2019, on the Waddell
Ranch properties. There were various facility projects in progress for the third quarter of 2020.
Lease operating expenses and property taxes totaled
$5.197 million (gross) for the third quarter of 2020, compared to $5.538 million (gross) for the same period in 2019 on the Waddell Ranch properties due to increased maintenance work.
Nine Months Ended September 30, 2020 Compared to Nine Months Ended September 30, 2019
For the nine months ended September 30, 2020, royalty income received by the Trust amounted to $10,059,901 compared to royalty income of
$15,357,784 for the nine months ended September 30, 2019. The decrease in royalty income is primarily attributable to a decrease in oil pricing, a decrease in oil and gas production, for the nine months ended September 30, 2020, as
compared to the nine months ended September 30, 2019. Average oil and gas prices were $40.05 and $1.38 for the nine months ended September 30, 2020 compared to $51.25 and $2.68 for the nine months ended September 30,
2019.
Interest income for the nine months ended September 30, 2020, was $8,064 compared to $18,174 during the nine months ended
September 30, 2019. The decrease in interest income is primarily attributable to substantially decreased amounts of funds available for investment. Total expenses during the nine months ended September 30, 2020, amounted to $955,281
compared to $876,098 during the nine months ended September 30, 2019. The increase in total expenses can be primarily attributed to increased expense for professional services, the timing of expense, and increase in reserve for expenses of
$50,000.
These transactions resulted in distributable income for the nine months ended September 30, 2020 of $9,112,684, or $0.20 per Unit.
For the nine months ended September 30, 2019, distributable income was $14,499,860, or $0.31 per Unit.
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