Whiting USA Trust I Announces Revised Estimated Termination Date for Net Profits Interest
January 20 2015 - 5:00PM
Business Wire
Whiting USA Trust I (NYSE: WHX) announced that, based on the
Trust’s reserve report for the underlying properties as of December
31, 2014, the net profits interest termination date is estimated to
occur by January 31, 2015. The net profits interest will terminate
when 9.11 MMBOE (which amount is equivalent to 8.20 MMBOE
attributable to the net profits interest) have been produced and
sold from the underlying properties, and the Trust will soon
thereafter wind up its affairs and terminate, after which it will
pay no further distributions. Consequently the market price of the
Trust units should decline to zero around or shortly after the
record date for the final expected distribution. To the extent that
the Trust units are trading at a price substantially in excess of
the aggregate distributions that may reasonably be expected to be
made prior to the termination of the Trust, the price decline is
likely to include one or more abrupt substantial decreases.
The estimated net profits interest termination date occurring by
January 31, 2015 is based on the Trust’s reserve report and certain
assumptions and estimates inherent therein. The actual net profits
interest termination date may occur before or after such estimated
date.
Once 9.11 MMBOE has been produced and sold from the underlying
properties, the Trust will shortly thereafter issue a press release
announcing the actual net profits interest termination date and the
wind up process for the Trust.
This press release contains forward-looking statements,
including all statements made in this press release other than
statements of historical fact. No assurances can be given that such
statements will prove to be correct. The estimated net profits
interest termination date is based on the Trust’s reserve report
and is subject to the assumptions contained therein. Additionally,
the estimated time when the market price of the Trust units should
decline to zero is based on the economic rights of the Trust units.
The trading price of the Trust units is affected by factors outside
of the control of the Trust or Whiting, including actions of market
participants, among others. Other important factors that could
cause actual results to differ materially include expenses of the
Trust, fluctuations in oil and natural gas prices, uncertainty of
estimates of oil and natural gas reserves and production, risks
inherent in the operation and production of oil and gas properties,
and future production costs. Statements made in this press release
are qualified by the cautionary statements made in this press
release. The Trustee does not intend, and assumes no obligation, to
update any of the statements included in this press release.
Whiting USA Trust IThe Bank of New York Mellon Trust
Company, N.A., as TrusteeMike Ulrich,
512-236-6599http://whx.investorhq.businesswire.com/