Pacific Coast Oil Trust Announces There Will Be No February Cash Distribution – … – Press Release


PACIFIC COAST OIL TRUST (OTC–ROYTL) (the “Trust”), a royalty trust formed by Pacific Coast Energy Company LP (“PCEC”), announced today that there will be no cash distribution to the holders of its units of beneficial interest of record on February 28, 2023 based on the Trust’s calculation of net profits generated during December 2022 (the “Current Month”) as provided in the conveyance of net profits interests and overriding royalty interest (the “Conveyance”). Given the Trust’s receipt of insufficient monthly income from its net profits interests and overriding royalty interest during 2020 and 2021, the Trust had been expected to terminate by its terms at the end of 2021; however, as described further below, a court had issued a temporary restraining order enjoining the dissolution of the Trust until an arbitration tribunal could rule on the plaintiff’s request for injunctive relief. As described further below, based on information from PCEC, the likelihood of distributions to the unitholders in the foreseeable future is extremely remote. All financial and operational information in this press release has been provided to the Trustee by PCEC.

The Current Month’s distribution calculation for the Developed Properties resulted in operating income of approximately $1.8 million. Revenues from the Developed Properties were approximately $7.7 million, lease operating expenses including property taxes were approximately $5.7 million, and development costs were approximately $222,000. The higher lease operating expenses reflected in the Current Month were mainly due to the additional expenses from the East Coyote and Sawtelle fields included in the Current Month’s calculations (see “Update on East Coyote and Sawtelle Fields” below), as well as additional compliance costs related to greenhouse gas emissions requirements. The average realized price for the Developed Properties was $81.93 per Boe for the Current Month, as compared to $86.73 per Boe in November 2022. Oil…