RED BANK, N.J., July 31, 2017 /PRNewswire/ -- The Trustees
of North European Oil Royalty Trust (NYSE: NRT) announced today a quarterly distribution of $0.20
per unit for the third quarter of fiscal 2017, payable on August 30, 2017 to holders of record on
August 18, 2017. Natural gas sold during the second calendar quarter of 2017 is the primary
source of royalty income on which the August 2017 distribution is based.
John R. Van Kirk, Managing Director, reported that this year's quarterly distribution of
$0.20 per unit is 33.33%, or $0.05 per unit, higher than the
distribution of $0.15 per unit for the third quarter of fiscal 2016. Specific details will be
available in the earnings press release scheduled for publication on or about August 11,
2017.
The Trust receives nearly all of its royalties under two royalty agreements. The Mobil Agreement, which is the higher
royalty rate agreement, covers gas sales from the western half of the Oldenburg concession. The OEG Agreement, which is the
lower royalty rate agreement, covers gas sales from the entire Oldenburg concession. The factors determining the amount of
gas royalties payable under the two agreements from the preceding calendar quarter are shown in the table below comparing the
second calendar quarters of 2017 and 2016. Further details will be available in the Trust's quarterly report on Form 10-Q
which will be available through the SEC or on the Trust's website, www.neort.com, on or about August 30, 2017.
|
Gas Data Providing Basis for Fiscal Quarter Royalties
|
|
Mobil Agreement
|
2nd Calendar Quarter
Ended 6/30/2017
|
2nd Calendar Quarter
Ended 6/30/2016
|
Percentage
Change
|
|
Gas Sales (Bcf)1
|
5.500
|
4.916
|
+ 11.88%
|
|
Gas Prices2 (Ecents/Kwh)3
|
1.7406
|
1.5363
|
+ 13.30%
|
|
Average Exchange Rate4
|
1.1175
|
1.1185
|
- 0.09%
|
|
Gas Royalties
|
$1,220,647
|
$ 969,471
|
+ 25.91%
|
|
OEG Agreement
|
|
|
|
|
Gas Sales (Bcf)
|
17.829
|
17.520
|
+ 1.76%
|
|
Gas Prices (Ecents/Kwh)
|
1.7750
|
1.5667
|
+ 13.30%
|
|
Average Exchange Rate
|
1.1175
|
1.1159
|
+ 0.14%
|
|
Gas Royalties
|
$ 517,750
|
$ 408,480
|
+ 26.75%
|
|
1Billion cubic feet
|
2Gas prices derived from February-April period
|
3Euro cents per kilowatt
hour
|
|
4Based on average Euro/dollar exchange rates of cumulative
royalty transfers
|
The table below shows an estimate of the amount of royalties anticipated to be received in the fourth quarter of fiscal 2017
based on the actual amount of royalties that were payable to the Trust for the second calendar quarter of 2017. Amounts in
dollars are based on the current exchange rate of 1.1655. Actual royalty income in dollars is valued based on exchange
rates on the day funds are transferred. The August estimate below includes a negative adjustment from the prior quarter of
Euros 140,329 and the absence of any payment under the Mobil sulfur royalty agreement for the
second quarter of 2017.
|
Estimated Combined
Royalties Anticipated in
|
Combined Royalties
In Euros
|
Combined Royalties
In Dollars
|
Dollar Royalties
In Cents per Unit
|
|
August
|
Euros 401,569
|
$ 468,029
|
$0.0509
|
|
September
|
Euros 541,898
|
$ 631,582
|
$0.0687
|
|
October
|
Euros 541,898
|
$ 631,582
|
$0.0687
|
The cumulative 12-month distribution, which includes the August 2017 distribution and the three
prior quarterly distributions, is $0.66 per unit. This 12-month cumulative distribution is
15.38% or $0.12 per unit lower than the prior 12-month distribution of $0.78 per unit. The Trust makes quarterly distributions to unit owners during the months of February,
May, August and November.
Contact – John R. Van Kirk, Managing Director, telephone: (732) 741-4008, email: jvankirk@neort.com. The Trust's press releases and other
pertinent information are available on the Trust's website: www.neort.com.
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SOURCE North European Oil Royalty Trust