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Whiting USA Trust II Announces Trust Quarterly Distribution

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Whiting USA Trust II (OTC:WHZT) announced today that the Trust will
make a distribution to unitholders in the second quarter of 2017, which
relates to net profits generated during the first quarterly payment
period of 2017. Unitholders of record on May 20, 2017 (which results in
an effective record date of May 19, 2017 due to the 20th of
May falling on a non-trading day) will receive a distribution of
$0.145591 per unit, which is payable on or before May 30, 2017 (the "May
2017 distribution").

As of the date of this press release, 99.9% of the Trust's total
18,400,000 units outstanding were held by Cede & Co. (The Depository
Trust Corporation's nominee) as the official unitholder of record. The
effective record date of May 19, 2017 for this distribution is only
applicable to unitholders of record such as Cede & Co., and the ex-date,
as set by The Financial Industry Regulatory Authority, Inc., or FINRA,
actually determines which street name holders will be eligible to
receive the May 2017 distribution.

Sales volumes, net profits and selected performance metrics for the
quarterly payment period were:

   
Sales volumes:
Oil (Bbl)(1) 231,107
Natural gas (Mcf)   301,450  
Total (BOE) 281,349
Gross proceeds:
Oil sales(1) $ 10,207,184
Natural gas sales   1,073,051  
Total gross proceeds $ 11,280,235  
Costs:
Lease operating expenses(2) $ 6,575,434
Production taxes 594,099
Development costs(3) 850,295
Cash settlements on commodity derivatives(4)   -  
Total costs $ 8,019,828  
Net profits $ 3,260,407
Percentage allocable to Trust's Net Profits Interest   90 %
Total cash available for the Trust $ 2,934,366
Provision for estimated Trust expenses (250,000 )
Montana state income taxes withheld   (5,485 )
Net cash proceeds available for distribution $ 2,678,881
Trust units outstanding   18,400,000  
Cash distribution per Trust unit $ 0.145591  
Selected performance metrics:
Crude oil average realized price (per Bbl)(1) $ 44.17
Natural gas average realized price (per Mcf)(5) $ 3.56
Lease operating expenses (per BOE)(2) $ 23.37
Production tax rate (percent of total gross proceeds) 5.3 %
__________
(1)   Oil includes natural gas liquids.
(2) Lease operating expenses declined $1.7 million (or 21%) from $8.3
million during the fourth quarterly payment period of 2016 to $6.6
million during the first quarterly payment period of 2017 primarily
due to lower ad valorem taxes and differences in timing associated
with invoices received and paid for non-operated properties between
periods.
(3) The Trust's underlying properties experienced an increase in
development costs during the first quarterly payment period of 2017
as compared to the fourth quarterly payment period of 2016 primarily
due to differences in timing associated with invoices received and
paid for non-operated properties between periods.
(4) All costless collar hedge contracts terminated as of December 31,
2014, and no additional hedges are allowed to be placed on Trust
assets. Consequently, there are no further cash settlements on
commodity hedges for inclusion in the Trust's computation of net
profits (or net losses, as the case may be), and the Trust has
increased exposure to oil and natural gas price volatility.
(5) The average sales price of natural gas for the gas production months
within the distribution period exceeded the average NYMEX gas prices
for those same months within the period due to the "liquids-rich"
content of a portion of the natural gas volumes produced by the
underlying properties.
 

The Trust's net profits interest ("NPI"), which is the only asset of the
Trust other than cash reserves held for future Trust expenses,
represents the right to receive 90% of the net proceeds from Whiting
Petroleum Corporation's interests in certain existing oil and natural
gas properties located primarily in the Rocky Mountains, Permian Basin,
Gulf Coast and Mid-Continent regions of the United States.

Trust Termination

The Trust will wind up its affairs and terminate shortly after the
earlier of (a) the NPI termination date or (b) the sale of the net
profits interest. The NPI termination date is the later to occur of (1)
December 31, 2021, or (2) the time when 11.79 MMBOE (10.61 MMBOE to the
90% net profits interest) have been produced from the underlying
properties and sold, which is estimated to be July 31, 2023 based on the
Trust's year-end 2016 reserve report. After the termination of the
Trust, it will pay no further distributions.

The Trust is required to sell the NPI and terminate if cash proceeds to
the Trust from the net profits interest are less than $2.0 million for
each of any two consecutive years (the "Annual Cash Proceeds Termination
Clause"). During the year ended December 31, 2016, the Trust received
cash proceeds of $1.9 million from the net profits interest. However,
during the first two calendar quarters of 2017, the Trust will receive
$4.4 million in cash proceeds from the NPI and therefore, the Trust will
not be required to sell the NPI and terminate pursuant to the Annual
Cash Proceeds Termination Clause as of December 31, 2017.

The market price of the Trust units will decline to zero at the
termination of the Trust, which will occur around or shortly after the
termination or sale of the net profits interest. As described in the
Trust's public filings, since the assets of the Trust are depleting
assets, a portion of each cash distribution paid on the Trust units, if
any, should be considered by investors as a return of capital, with the
remainder being considered as a return on investment.

Net Profits Interest Overview

As of March 31, 2017, on a cumulative accrual basis, 7.15 MMBOE (67%) of
the Trust's total 10.61 MMBOE have been produced and sold or divested.
Based on the Trust's reserve report for the underlying properties as of
December 31, 2016, the Trust's 10.61 MMBOE are projected to be produced
by July 31, 2023, shortly after which the Trust would terminate.
Additionally, the 2016 year-end reserve report reflects expected
annualized production decline rates of approximately 12.1% for oil and
15.4% for gas between 2017 and 2023, which estimates are derived from
NYMEX oil and gas prices of $42.75 per Bbl and $2.49 per MMbtu as
calculated pursuant to current SEC and FASB guidelines. As of April 28,
2017, the NYMEX oil and gas prices were $49.33 per Bbl and $3.28 per
MMBtu, respectively.

Although oil and gas prices have stabilized since the lows experienced
during the 2016 distribution periods, oil and gas prices historically
have been volatile and may fluctuate widely in the future. The Trust is
unable to predict future commodity prices, and it appears likely that
future distributions to Trust unitholders, if any, will continue to be
impacted by lower oil and natural gas prices. Lower commodity prices are
likely to cause a reduction in the amount of oil, natural gas and
natural gas liquids that is economic to produce from the underlying
properties, which may in turn extend the length of time required to
produce the Trust's 10.61 MMBOE. Alternatively, higher commodity prices
may potentially result in an increase in the amount of oil, natural gas
and natural gas liquids that is economic to produce from the underlying
properties, however, higher prices could result in increases in costs of
materials, services and personnel. Furthermore, cash distributions to
unitholders may decline at a faster rate than the rate of production due
to industry-specific risks and uncertainties such as (i) oil and gas
price declines, (ii) fixed and semi-variable costs not decreasing as
fast as production volumes or (iii) expected future development being
delayed, reduced or cancelled.

Forward-Looking Statements

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 time when the Trust will terminate is
based on the Trust's reserve report of the underlying properties as of
December 31, 2016 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, uncertainty as to the
timing of any such production, risks inherent in the operation,
production and development of oil and gas properties, and future
production and development 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.

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