VOC Energy Trust (NYSE: VOC) announced the Trust distribution of net profits for the third quarterly payment period ended September 30, 2012.
Unitholders of record on October 30, 2012 will receive a distribution amounting to $7,820,000, or $0.46 per unit, payable November 14, 2012.
The underlying oil and gas properties subject to the Trust’s net profits interest include properties located in Brazos County, Texas. VOC Brazos is continuing to develop the Woodbine C Sand underlying the Kurten Woodbine Unit in the area, utilizing horizontal wells completed with multiple fracture stimulations together with recompletions of existing vertical wellbores into additional pay intervals. In September 2012, VOC Brazos began producing from the first of three horizontal wells planned for 2012; the second horizontal well was abandoned due to mechanical issues with the wellbore; and the third horizontal well was spudded in October 2012. As a result of the abandoned horizontal well, future production volumes for the underlying properties in the Kurten Woodbine Unit will be less, while remaining costs associated with this activity will be incurred in the future quarterly payment period. Future distributions to the Trust from the net profits interest will be impacted by this event.
Volume and net profits for the payment period were:
|Proceeds (per BOE)||$||77.87|
|Percentage applicable to Trust’s 80%|
|Net Profits Interest||$||7,254,874|
|Decrease in cash reserve held by VOC Brazos Energy Partners, L.P.||$||750,000|
|Total cash proceeds available for the Trust||$||8,004,874|
|Provision for estimated Trust expenses||$||(184,874||)|
|Net cash proceeds available for distribution||$||7,820,000|