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VOC Energy Trust (NYSE: VOC) announced a Trust distribution, which relates to net profits generated during the payment period ended December 31, 2011.
Unitholders of record on January 30, 2012 will receive a distribution amounting to $7,480,000 or $0.44 per unit payable February 14, 2012.
VOC Energy Trust is a Delaware statutory trust formed by VOC Brazos Energy Partners, L.P. (VOC Brazos) to own a term net profits interest representing the right to receive 80% of the net proceeds from the sale of production from substantially all of the interests in oil and natural gas properties in the states of Kansas and Texas held by VOC Brazos as of the date of the conveyance of net profits interest to the Trust.
The underlying oil and gas properties subject to the Trust’s net profits interest include properties located in Brazos County, Texas. VOC Brazos is continuing to develop the Woodbine C Sand underlying the Kurten Woodbine Unit in the area, utilizing horizontal wells completed with multiple fracture stimulations together with recompletions of existing vertical wellbores into additional pay intervals. However, there has been a significant increase in industry activity in this area, which has caused a shortage of critical services, particularly fracture stimulation services. This shortage of services has generally resulted in delays for completion operations in the area, which VOC Brazos believes is generally from 60 to 120 days. As a result, production volume for the underlying properties in the Kurten Woodbine Unit was less than previously forecasted for the fourth quarter, yet related costs for such development were incurred during the quarter. The distribution to the Trust from the net profits interest was impacted by these events.
In connection with this distribution, VOC Brazos has released the $1,000,000 it previously reserved for future development, maintenance or operating expenditures, although it can reserve at any time in the future up to $1,000,000 for future development, maintenance or operating expenditures.