PACIFIC COAST OIL TRUST (NYSE:ROYT) (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 May 18, 2020 based on the Trust's calculation of net profits generated during March 2020 (the "Current Month") as provided in the conveyance of net profits interests and overriding royalty interest. If the Trust continues to experience negative monthly net profits, the Trust is expected to terminate by its terms by the end of 2021. As described further below, based on information from PCEC, the likelihood of distributions to the unitholders in the foreseeable future is extremely remote. The Trust may also be terminated upon the occurrence of other events as described in the Trust's filings with the SEC. 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 $0.4 million of excess operating expenses and development costs. Revenues from the Developed Properties were $1.8 million, lease operating expenses including property taxes were $2.1 million, and development costs were approximately $128,000. The average realized price for the Developed Properties was $30.46 per Boe for the Current Month, as compared to $54.64 per Boe in February 2020, contributing to the significant decrease in revenues. The decline in realized price per Boe is primarily attributable to the decrease in demand for crude oil due to the COVID-19 pandemic and oversupply resulting from the dispute over production levels between Russia and the members of the Organization of Petroleum Exporting Countries, including Saudi Arabia. The cumulative net profits deficit amount for the Developed Properties, which reflects the deduction of the estimated asset retirement obligation ("ARO") relating to the Developed Properties as discussed in last month's press release and below under "Update on Estimated Asset Retirement Obligations" of approximately $25.8 million, increased to approximately $25.6 million for the Current Month.

The Current Month's calculation included approximately $34,000 for the 7.5% overriding royalty interest on the Remaining Properties from Orcutt Diatomite and Orcutt Field. Average realized prices for the Remaining Properties were $28.12 per Boe in the Current Month, as compared $50.37 per Boe in February 2020. The cumulative net profits deficit for the Remaining Properties, including the 7.5% overriding royalty interest payments and reflecting the deduction of the estimated ARO relating to the Remaining Properties as discussed below under "Update on Estimated Asset Retirement Obligations," decreased by approximately $0.3 million and was approximately $3.1 million for the Current Month.

PCEC has provided the Trust with a $1 million letter of credit to be used by the Trust if its cash on hand (including available cash reserves) is not sufficient to pay ordinary course administrative expenses as they become due. Further, if the Trust requires more than the $1 million under the letter of credit to pay administrative expenses, PCEC may loan funds to the Trust necessary to pay such expenses; however, PCEC has informed the Trustee that for the foreseeable future PCEC does not expect to loan such funds to the Trust. Any funds provided under the letter of credit or loaned by PCEC may only be used for the payment of current accounts or other obligations to trade creditors in connection with obtaining goods or services or for the payment of other accrued current liabilities arising in the ordinary course of the Trust's business. The Trust will be drawing funds from the letter of credit to pay the expected shortfall of approximately $133,000, which together with prior drawdowns will leave approximately $751,000 remaining of the $1 million. In addition to the funds drawn from the letter of credit, the Trust has outstanding borrowings from PCEC of approximately $261,000 related to shortfalls from prior months, including interest thereon. Consequently, no further distributions may be made to Trust unitholders until the indebtedness created by such amounts drawn or borrowed, including interest thereon, has been paid in full.

As previously disclosed, in November 2019, PCEC informed the Trustee that, as permitted by the agreements governing the conveyances to the Trust, PCEC intended to begin deducting its estimated ARO associated with the West Pico, Orcutt Hill, Orcutt Hill Diatomite, East Coyote and Sawtelle fields reducing the amounts payable to the Trust under its Net Profits Interest. ARO is the accounting recognition related to plugging and abandonment obligations that all operators face. PCEC engaged an accounting firm to assist PCEC in determining its estimated ARO, and on February 27, 2020, PCEC informed the Trustee that PCEC's estimate of its ARO, as of December 31, 2019, is $45,695,643, which is approximately $10.0 million less than the originally estimated amount as previously disclosed in the Trust's Current Report on Form 8‑K filed on November 13, 2019. According to PCEC, the estimated ARO, which reflects PCEC's assessment of current market conditions and recent changes in California law, was determined to be approximately $33.2 million for the Developed Properties and approximately $12.5 million for the Remaining Properties, and PCEC has reflected these amounts in the calculation of the net profits generated during January 2020. The consulting firm engaged by the Trustee to review PCEC's original estimate of its ARO is continuing its review, and that firm as well as the Trust's independent registered public accounting firm are continuing to evaluate PCEC's more recent estimate. The actual ARO incurred in the future may exceed the estimated amounts provided by PCEC.

As described in more detail in the Trust's filings with the SEC, the Trust will terminate if the annual cash proceeds received by the Trust from the Net Profits Interest and Royalty Interest total less than $2.0 million for each of any two consecutive calendar years. PCEC is deducting estimated ARO, thereby reducing the amounts payable to the Trust. Unless significant market changes were to occur, no payments will be made by PCEC to the Trust for the foreseeable future, which would result in the total proceeds received by the Trust to total less than $2.0 million in each of 2020 and 2021.

On March 11, 2020, the World Health Organization characterized the outbreak of COVID-19 as a pandemic, which has resulted in the implementation of a series of public health and emergency measures to combat the spread of the virus. COVID-19 and the responses by federal, state and local governmental authorities to the pandemic has resulted in widespread and localized health crises that adversely affect general commercial activity, the economies and financial markets of many countries and localities, as well as global demand for oil and natural gas. COVID-19 has also resulted in significant business and operational disruptions, including business closures, disruptions to supply chains, travel restrictions and limitations on the availability of workforces. The full impact of COVID-19 is unknown and is rapidly evolving. The extent to which COVID-19 negatively impacts PCEC or any third-party operator of and production from the Underlying Properties will depend on the severity, location and duration of the effects and spread of COVID‑19, the actions undertaken by federal, state and local governments and health officials to contain the virus or treat its effects, and how quickly and to what extent economic conditions improve and normal business and operating conditions resume. In addition, a dispute over production levels between Russia and the members of the Organization of Petroleum Exporting Countries, including Saudi Arabia, has resulted in global oversupply of crude oil. A prolonged period of low crude oil and natural gas prices would adversely affect PCEC or any third-party operator of the Underlying Properties. If commodity prices for crude oil and natural gas remain at reduced levels, monthly cash distributions to unitholders will be substantially lower than historical distributions, and in certain periods there may be no distribution to unitholders. Continued low prices of oil and natural gas will reduce the amount of the net proceeds to which the Trust is entitled and may ultimately reduce the amount of oil and natural gas that is economic to produce from the underlying properties. As a result, PCEC or any third-party operator could determine during periods of low commodity prices to shut in or curtail production from wells on the underlying properties. In addition, PCEC or any third-party operator could determine during periods of low commodity prices to plug and abandon marginal wells that otherwise may have been allowed to continue to produce for a longer period under conditions of higher prices. In addition, the substantial declines in crude oil and natural gas prices will materially decrease the Trust's oil and gas reserve estimates and may also result in a significant decrease in the quantities of recovered reserves attributable to the Underlying Properties.

PCEC has informed the Trustee that due to the economic effects of the COVID-19 pandemic and the oversupply of crude oil resulting from the dispute over production levels, PCEC is in the process of shutting in a substantial portion of its production, having shut in approximately 13% of its production to date since the beginning of the crisis, as current market conditions do not allow PCEC to cover costs related to production. As a result, PCEC has informed the Trustee that any quarterly payments that PCEC may make to the Trust will unlikely be sufficient to cover the Trust's administrative expenses, and therefore the likelihood of distributions to the unitholders in the foreseeable future is extremely remote.

Pacific Coast Oil Trust is a Delaware statutory trust formed by PCEC to own interests in certain oil and gas properties in the Santa Maria Basin and the Los Angeles Basin in California (the "Underlying Properties"). The Underlying Properties and the Trust's net profits, and royalty interests are described in the Trust's filings with the SEC. As described in the Trust's filings with the SEC, the amount of any periodic distributions is expected to fluctuate, depending on the proceeds received by the Trust as a result of actual production volumes, oil and gas prices, development expenses, and the amount and timing of the Trust's administrative expenses, among other factors. For additional information on the Trust, please visit www.pacificcoastoiltrust.com.

This press release contains statements that are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release, other than statements of historical facts, are "forward-looking statements" for purposes of these provisions. These forward-looking statements include estimates of future asset retirement obligations, expectations regarding the impact of deductions for such obligations on future distributions to unitholders, estimates of future total distributions to unitholders in 2020 and 2021, expectations regarding the impact of COVID-19 on the Trust and the impact of the pandemic on future distributions to unitholders, expectations regarding the impact of lower commodity prices on oil and gas reserve estimates, PCEC's plans to shut in production, and the amount and date of any anticipated distribution to unitholders. In any case, PCEC's deductions of its estimated asset retirement obligations will have a material adverse effect on distributions to the unitholders and on the trading price of the Trust units and may result in the termination of the Trust. Any anticipated distribution is based, in part, on the amount of cash received or expected to be received by the Trust from PCEC with respect to the relevant period. Any differences in actual cash receipts by the Trust could affect this distributable amount. The amount of such cash received or expected to be received by the Trust (and its ability to pay distributions) has been and will be significantly and negatively affected by prevailing low commodity prices, which have declined significantly, could decline further and could remain low for an extended period of time in light of the economic effects of the COVID-19 pandemic and the dispute over production levels between Russia and the members of the Organization of Petroleum Exporting Countries, including Saudi Arabia. Other important factors that could cause actual results to differ materially include expenses related to the operation of the Underlying Properties, including lease operating expenses, expenses of the Trust, and reserves for anticipated future expenses. Statements made in this press release are qualified by the cautionary statements made in this press release. Neither PCEC nor the Trustee intends, and neither assumes any obligation, to update any of the statements included in this press release. An investment in units issued by Pacific Coast Oil Trust is subject to the risks described in the Trust's Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 8, 2019, and if applicable, the Trust's subsequent Quarterly Reports on Form 10-Q. The Trust's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q are available over the Internet at the SEC's website at http://www.sec.gov.