DALLAS, June 3, 2024
/PRNewswire/ -- Argent Trust Company, as Trustee of the
Permian Basin Royalty Trust (NYSE: PBT) ("Permian" or the
"Trust") announces that proceeds for the Waddell Ranch
Properties in the amount of $2,247,045 were received on May 31, 2024. These proceeds will be included in
the June 2024 distribution
calculation, together with proceeds from the Texas Royalty
Properties, which will be announced on Monday, June 17, 2024.
Contrary to historical practice, Blackbeard Operating, LLC
("Blackbeard"), the operator of the Waddell Ranch Properties, did
not provide the Trustee with any supporting documentation regarding
production or pricing of the oil or natural gas products, or any
information on any deductions from gross proceeds or capital
expenditures with the funds transmitted to the Trust.
Trust Litigation. On May 8,
2024, the Trustee announced that it had initiated a lawsuit
by filing a petition in the District Court of Tarrant County, Texas against Blackbeard, the
operator of properties in the Waddell Ranch, in Crane County, Texas, in which the Trust holds
a 75% net overriding royalty.
Pursuant to the petition, the Trustee seeks to recover more than
$15 million in damages to the Trust
resulting from overhead costs and other expenses the Trustee
alleges were impermissibly deducted from royalty
payments to the Trust. The Trustee routinely engages in audits of
the revenues and expenses with respect to the Trust's royalty
payments. In connection with its audit for the period from
2020-2022 the Trustee identified exceptions to certain expenses
deducted from the Trust's royalty payments, including among other
things, incorrect overhead charges, application of overhead charges
to non-producing wells, duplicate charges for services, materials
and utilities as well as other expenses the Trustee
alleges are ineligible charges. Attempts to resolve
the disputed charges outside of court have been unsuccessful to
date.
The 2023 Annual Report with Form 10-K, which includes the
December 31, 2023, Reserve Summary,
is posted on Permian's website. Permian's cash distribution
history, current and prior year financial reports, tax information
booklets, and a link to filings made with the Securities and
Exchange Commission, all can be found on Permian's website at
http://www.pbt-permian.com/. Additionally, printed reports
can be requested and are mailed free of charge.
Contact: Jana Egeler, Vice President, Argent
Trust Company, Trustee,
Toll Free – 1.855.588.7839
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SOURCE Permian Basin Royalty Trust