DALLAS, May 6, 2022
/PRNewswire/ -- Simmons Bank, as
Trustee of the Sabine Royalty Trust (NYSE: SBR), today declared a
cash distribution to the holders of its units of beneficial
interest of $0.603540 per unit,
payable on May 31, 2022, to unit
holders of record on May 16,
2022. Sabine's cash distribution history, current and prior
year financial reports and tax information booklets, a link to
filings made with the Securities and Exchange Commission and more
can be found on its website at
http://www.sbr-sabine.com/. Additionally, printed
reports can be requested and are mailed free of charge.
This distribution reflects primarily the oil production for
February 2022 and the gas production
for January 2022. Preliminary production volumes are
approximately 47,602 barrels of oil and 1,374,858 Mcf of gas.
Preliminary prices are approximately $87.42 per barrel of oil and $4.26 per Mcf of gas.
This month's distribution is lower than the previous month's due
to the decreased production of both oil and gas, primarily due to a
shorter production month of February for oil.
The production from the new horizontal gas wells in Panola County, Texas, has contributed
approximately $860,000 reflecting
January production. They were averaging about 875 Mcf per day per
well during December totaling over 217,000 Mcf during this time
frame with an average pricing of $3.74 per Mcf. In addition to these
proceeds, the additional 8 new wells which were paid upon for the
single month of January, contributing approximately $200,000, reflecting an average of 265 Mcf per
well, per day.
Additionally, another 3 new horizontal wells, also in
Panola County, were paid on by
another operator for the previous 3 months of production from
December 2021 through February 2022 resulting in approximately 390,000
Mcf of gas, with an average of 1,608 Mcf of gas per well, per day
and a net revenue to the trust of about $1.4
million for this month's distribution.
As more regular monthly receipts are made in the months to come,
additional information will be made available.
The table below compares this month's production
and prices to the previous month's:
|
|
Net to Trust
Sales
|
|
|
|
|
Volumes
|
|
Average
Price
|
|
|
Oil (bbls)
|
|
Gas (Mcf)
|
|
Oil
(per bbl)
|
|
Gas
(per Mcf)
|
|
|
|
|
|
|
|
|
|
Current
Month
|
|
47,602
|
|
1,374,858
|
|
$87.42
|
|
$4.26
|
|
|
|
|
|
|
|
|
|
Prior Month
|
|
70,536
|
|
1,430,163
|
|
$76.67
|
|
$4.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues are only distributed after they are received, verified
and posted. Most energy companies normally issue payment of
royalties on or about the 25th of every month, and
depending on mail delivery, a varying amount of royalties are not
received until after the revenue posting on the last business day
of the month. The revenues received after that date will be
posted within 30 days of receipt.
Due to the timing of the end of the month of April,
approximately $1,935,000 of revenue
received will be posted in the following month of May in addition
to normal receipts during May. Since the close of business in
April and prior to this press release, $4,637,000 in revenue has been received.
Sabine Royalty Trust, as it does after the end of each year, had
a year-end Reserve Report prepared in accordance with the
Securities and Exchange Commission's requirements. This
report provides an evaluation of the estimated asset value as of
December 31 of each year, which can
be used to estimate the remaining life of the Trust.
The estimated net proved reserves, as of January 1, 2022, attributable to the Trust from
the properties appraised are approximately 6.0 million barrels of
oil and 42.8 billion cubic feet of gas with a future net value of
approximately $470,140,000 with a
discounted value at 10% of $207,703,000. With these estimated
quantities of this year's reserve estimate of 6.0 million barrels
of oil and 42.8 billion cubic feet of gas remaining, it could be
estimated that the Trust still has a life span of 8 to 10
years. The report is an exhibit to the Trust's Annual Report
on Form 10-K that was filed on March 25,
2022 and is available to all unitholders at this time on the
SEC website and Sabine's website.
The 2021 Annual Report with Form 10-K and the January 1, 2022 Reserve Summary will be posted in
the month of April on the Sabine website at
http://www.sbr-sabine.com/.
View original
content:https://www.prnewswire.com/news-releases/sabine-royalty-trust-announces-monthly-cash-distribution-for-may-2022-301541721.html
SOURCE Sabine Royalty Trust