Market Overview

Pacific Coast Oil Trust Announces April Cash Distribution

Share:

PACIFIC COAST OIL TRUST (NYSE:ROYT) (the "Trust"), a royalty trust
formed by Pacific Coast Energy Company LP ("PCEC"), announced today a
cash distribution to the holders of its units of beneficial interest of
$0.02225 per unit, payable on April 23, 2018 to unitholders of record on
April 9, 2018. The Trust's distribution calculation relates to net
profits and overriding royalties generated during February 2018 as
provided in the conveyance of net profits and overriding royalty
interest. All information in this press release has been provided to the
Trustee by PCEC.

The current month's calculation for the Developed Properties resulted in
$1.3 million of revenues less direct operating expenses and development
costs. The current month's revenues were $3.9 million, lease operating
expenses including property taxes were $2.2 million and capital
expenditures were $0.3 million. Average realized prices for the
Developed Properties were $64.05 per Boe in February, as compared to
$66.34 per Boe in January. Net profits for the month of February for the
Developed Properties were $1.1 million.

The current month's calculation included $54,000 for the 7.5% overriding
royalty on the Remaining Properties from Orcutt Diatomite and Orcutt
Field. Average realized prices for the Remaining Properties were $60.97
per Boe in February, as compared to $63.24 per Boe in January. The
cumulative net profits deficit for the Remaining Properties, including
the 7.5% overriding royalty payments, decreased $91,000 and remains at
$1.5 million for February.

The net cash flow available for distribution to the holders of units of
beneficial interest is approximately $0.9 million. The proceeds expected
to be received by the Trust in April of $1.1 million consist of $1.1
million in income from the Developed Properties and approximately
$54,000 in income from the 7.5% overriding royalty on the Remaining
Properties. The proceeds to be received by the Trust will be partially
offset by $89,000 for the monthly operating and services fee payable to
PCEC and $165,000 in Trust general and administrative expenses resulting
in the net cash flow available for distribution of approximately $0.9
million.

Sales Volumes and Prices

The following table displays PCEC's underlying sales volumes and average
prices for the month of February 2018:

             
  Underlying Properties
Sales Volumes Average Price
 

(Boe)

   

(Boe/day)

(per Boe)
 
Developed Properties (a)

60,351

2,155

$64.05
Remaining Properties (b)

12,311

440

$60.97
 
(a) Crude oil sales represented 100% of sales volumes.
(b) Crude oil sales represented 100% of sales volumes.
 

West Pico Natural Gas Export Line Update

Due to a temporary shutdown downstream of the natural gas export
pipeline from West Pico, West Pico has had to temporarily shut in select
wells to limit the amount of associated gas produced from oil
production. West Pico net production attributable to the Developed
Properties prior to the shutdown was approximately 320 Boe/d
(approximately 260 Boe/d net to the Trust). During the shutdown months,
which began in December 2017 and are expected to last into the second
quarter of 2018, production is down by approximately 40%. Following the
return to service of the natural gas export line, West Pico is expected
to return production to levels similar to those prior to the shutdown
months.

Overview of Trust Structure

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 Securities and
Exchange Commission (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.

Cautionary Statement Regarding Forward-Looking
Information

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 PCEC's estimates regarding its 2018 capital program,
the amount and date of any anticipated distribution to unitholders, the
expected length of the shutdown of select wells in West Pico, and the
expected production levels of those wells following their return to
service. The 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. Other important factors that could cause actual
results to differ materially include 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, 2017 filed with the SEC on March 9,
2018, 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.

View Comments and Join the Discussion!