Enduro Royalty Trust (NYSE: NDRO) (the “Trust”) today announced results
from the first three wells drilled in the Wolfcamp play in the Midland
Basin and reported its monthly cash distribution to be paid in April
2014.
Wolfcamp Production Results and Activity Update
The Rocker B 40H, 41H, and 42H were completed in early February with
first production reported at the end of February. The 24-hour peak flow
back rate for the Rocker B 41H was approximately 1,320 BOE/D, while the
Rocker B 40H and 42H had 24-hour peak rates of 880 BOE/D and 890 BOE/D,
respectively. Each of the wells has an oil content of approximately 65%
with an overall liquids content of approximately 90%.
In early 2014, Enduro received drilling proposals from Pioneer Natural
Resources for the next 4 Wolfcamp wells to be drilled on the properties
underlying the Trust. The Rocker B 43H was spud in January, the 44H and
45H were spud in February, and the 46H was spud in March.
The following table displays the current status of the Wolfcamp wells
and Enduro’s working interest percentage:
Well Name
|
|
|
Operator
|
|
|
Current Status
|
|
|
Reservoir
|
|
|
County & State
|
|
|
Enduro
Working Interest
|
Rocker B 40H
|
|
|
Pioneer
|
|
|
Producing
|
|
|
Wolfcamp
|
|
|
Reagan, TX
|
|
|
25.00
|
%
|
Rocker B 41H
|
|
|
Pioneer
|
|
|
Producing
|
|
|
Wolfcamp
|
|
|
Reagan, TX
|
|
|
25.00
|
%
|
Rocker B 42H
|
|
|
Pioneer
|
|
|
Producing
|
|
|
Wolfcamp
|
|
|
Reagan, TX
|
|
|
25.00
|
%
|
Rocker B 43H
|
|
|
Pioneer
|
|
|
Drilling
|
|
|
Wolfcamp
|
|
|
Reagan, TX
|
|
|
6.25
|
%
|
Rocker B 44H
|
|
|
Pioneer
|
|
|
Drilling
|
|
|
Wolfcamp
|
|
|
Reagan, TX
|
|
|
6.25
|
%
|
Rocker B 45H
|
|
|
Pioneer
|
|
|
Drilling
|
|
|
Wolfcamp
|
|
|
Reagan, TX
|
|
|
6.25
|
%
|
Rocker B 46H
|
|
|
Pioneer
|
|
|
Drilling
|
|
|
Wolfcamp
|
|
|
Reagan, TX
|
|
|
6.25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monthly Cash Distribution
A cash distribution of $0.070692 per unit will be paid on April 14, 2014
to the Trust’s unitholders of record on March 31, 2014. The distribution
primarily represents oil production during the month of December 2013
and natural gas production during November 2013.
The following table displays underlying oil and natural gas sales
volumes and average prices attributable to the current and prior month
distributions.
|
|
Underlying Sales Volumes
|
|
Average Price
|
|
|
Oil
(Bbls)
|
|
Natural Gas
(Mcf)
|
|
Oil
(per Bbl)
|
|
Natural Gas
(per Mcf)
|
Current Month
|
|
68,239
|
|
448,645
|
|
$
|
91.07
|
|
$
|
3.80
|
Prior Month
|
|
68,212
|
|
453,517
|
|
$
|
89.71
|
|
$
|
3.83
|
|
|
|
|
|
|
|
|
|
Oil cash receipts increased slightly from the prior month and totaled
$6.2 million as a result of increased NYMEX oil prices, while natural
gas cash receipts remained consistent with the prior month at $1.7
million. Oil and natural gas cash receipts continued to be affected by
the severe winter weather in the Permian Basin during November and
December, which caused downtime that adversely affected oil and natural
gas production volumes in the area. As an indication of the impact of
the severe winter weather, Enduro estimates that January oil production
results to be included in next month’s distribution calculation are 6%
higher than December production rates shown above. This estimate is
prior to the impact of new production from the Rocker B wells that are
currently producing, as discussed above.
Capital expenditures included in the current month distribution were
approximately $1.7 million, which relates to capital expenditures
incurred in January.
Proceeds from the settlement of hedge contracts for the properties
underlying the Trust were approximately $0.1 million, which relate to
settlements of December 2013 oil hedges. Due to the terms of the net
profits interest, Enduro is prohibited from entering into any new
hedging arrangements burdening the Trust and, as a result, there will be
no further proceeds from natural gas or oil hedges.
About Enduro Royalty Trust
Enduro Royalty Trust is a Delaware statutory trust formed by Enduro
Resource Partners to own a net profits interest representing the right
to receive 80% of the net profits from the sale of oil and natural gas
production from certain of Enduro Resource Partners’ properties in the
states of Texas, Louisiana and New Mexico. As described in the Trust’s
filings with the Securities and Exchange Commission, the amount of the
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 and the amount and timing of capital expenditures and
the Trust’s administrative expenses, among other factors. Future
distributions are expected to be made on a monthly basis. For additional
information on the Trust, please visit www.enduroroyaltytrust.com.
Forward-Looking Statements and Cautionary Statements
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 the amount and date of any anticipated distribution
to unitholders. The anticipated distribution is based, in part, on the
amount of cash received or expected to be received by the Trust from
Enduro Resource Partners with respect to the relevant period. Any
differences in actual cash receipts by the Trust could affect this
distributable amount. 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 Enduro Resource Partners 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 Enduro Royalty Trust is
subject to the risks described in the Trust’s filings with the SEC,
including the risks described in the Trust’s Annual Report on Form 10-K
for the year ended December 31, 2013, filed with the SEC on March 11,
2014. The Trust’s quarterly and other filed reports are or will be
available over the Internet at the SEC’s website at http://www.sec.gov.
Copyright Business Wire 2014