TEL Offshore Trust Announces There Will Be No Second Quarter 2010 Distribution; Removal Of Individual Trustee

TEL OFFSHORE TRUST announced that there will be no trust distribution for the second quarter of 2010 for unitholders of record on June 30, 2010. The Trust has not been able to make a distribution to unitholders since January 9, 2009. The financial and operating information included herein for the Trust’s second quarter of 2010 reflects financial and operating information with respect to the royalty properties for the months of February, March and April 2010.

Gas revenues recorded by the Working Interest Owners on the royalty properties decreased approximately 24% to $349,538 in the second quarter of 2010 from $461,131 in the first quarter of 2010. Natural gas volumes during the second quarter of 2010 decreased approximately 41% to 57,971 Mcf from 98,850 Mcf during the first quarter of 2010. The decrease in volumes is due primarily to the cessation of production at Ship Shoal 182/183 in late March 2010 due to a leak in the oil pipeline that services Ship Shoal 182/183. Such pipeline was repaired and Ship Shoal 182/183 was reopened on May 1, 2010 after a 36-day shut-in. The decrease in volumes was partially offset by an increase of approximately 29% in the average price received for natural gas, to $6.03 per Mcf in the second quarter of 2010 as compared to $4.66 per Mcf received in the first quarter of 2010.

Crude oil revenues recorded by the Working Interest Owners on the royalty properties decreased approximately 40% to $2,307,559 in the second quarter of 2010 from $3,847,919 in the first quarter of 2010. Oil volumes during the second quarter of 2010 decreased approximately 41% to 29,867 barrels, compared to 50,908 barrels of oil produced in the first quarter of 2010. The decrease in volumes is due primarily to the cessation of production at Ship Shoal 182/183 as described above. The average price received for oil increased approximately 2% to $77.26 per barrel in the second quarter of 2010 as compared to $75.59 per barrel received in the first quarter of 2010.