DALLAS, June 3, 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 $0.719500 per unit,
payable on June 29, 2022, to unit
holders of record on June 15, 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
March 2022 and the gas production for
February 2022. Preliminary production
volumes are approximately 64,786 barrels of oil and 1,037,379 Mcf
of gas. Preliminary prices are approximately $94.63 per barrel of oil and $5.19 per Mcf of gas.
This month's distribution is higher than the previous month's
due to increased production of oil and pricing of both oil and
gas.
The production from the new horizontal gas wells in Panola County, Texas, has contributed
approximately $990,000 reflecting
February production. They were averaging about 809 Mcf per day per
well during February totaling over 182,000 Mcf during this time
frame with an average pricing of $5.85 per Mcf. In addition to these proceeds, the
additional 8 new wells which were paid upon for the month of
February, contributing approximately $260,000, reflecting an average of 230 Mcf per
well, per day.
Additionally, another 3 new horizontal wells, also in
Panola County, were paid on by
another operator for the month of production for March 2022 resulting in approximately 150,000 Mcf
of gas, with an average of 1,616 Mcf of gas per well, per day and a
net revenue to the trust of about $735,000 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
|
|
64,786
|
|
1,037,379
|
|
$94.63
|
|
$5.19
|
|
|
|
|
|
|
|
|
|
Prior Month
|
|
47,602
|
|
1,374,858
|
|
$87.42
|
|
$4.26
|
|
|
|
|
|
|
|
|
|
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 May, approximately
$2,264,000 of revenue received will
be posted in the following month of June in addition to normal
receipts during June. Since the close of business in May and prior
to this press release, $2,211,000 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 has been posted
on the Sabine website at
http://www.sbr-sabine.com/.
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SOURCE Sabine Royalty Trust