As explained in the prospectus for the initial public offering of the Trust units, the first quarterly 2012 distribution includes crude oil sales for the months of January through a portion of March 2012, and natural gas and natural gas liquids for the months of January through a portion of February 2012, due to the time lag in receiving oil, natural gas and natural gas liquids sales proceeds that causes sales for some months in a quarter to not be paid out until the next quarter’s distribution. Likewise, the first quarterly distribution will not include production taxes relating to a full three months of oil, natural gas and natural gas liquids sales proceeds as well. In addition, the first quarterly 2012 distribution does not include a full three months of lease operating expenses and development costs due to the time lag in receiving and processing invoices for oil field goods and services received during the first quarter of 2012. All future quarterly distributions will generally relate to production of oil, natural gas and natural gas liquids for a three month period and will generally include three months of production taxes, lease operating expenses and development costs.
The net profits interest represents the right to receive 90% of the net proceeds from Whiting Petroleum Corporation’s interests in certain existing oil and natural gas properties located primarily in the Rocky Mountains, Permian Basin, Gulf Coast and Mid-Continent regions of the United States. The net profits interest will terminate on the later to occur of (1) December 31, 2021, or (2) the time when 11.79 MMBOE have been produced from the underlying properties and sold (which amount is equivalent to 10.61 MMBOE attributable to the net profits interest), and the Trust will soon thereafter wind up its affairs and terminate, after which it will pay no further distributions.