Message #20 From:
NewsBot Date: March 20, 2007 02:17:00 PM
MOSH News Mesa Offshore Trust Announces No Trust Income for March 2007
AUSTIN, Texas--(BUSINESS WIRE)--Mesa Offshore Trust (OTCBB:MOSH) announced that there will be no Trust income distribution for the month of March 2007 for Unitholders of record on March 30, 2007.
The Trust did not receive any Royalty income from the Working Interest Owner for the month of March 2007. As of January 31, 2007 the Working Interest Owner estimates that the abandonment accrual for amounts expended but not recouped and for projected future abandonment expenses for the properties in which the Trust has an interest is approximately $1.4 million net to the Trust. These costs will be deducted from any future gross proceeds on the Royalty properties, which deductions will reduce future Royalty income. In addition, no Royalty income will be distributed to Unitholders until the Trustee recoups Trust expenses being paid from the reserve that the Trustee has established for anticipated future expenses. As of December 2006, approximately $1.1 million will be withheld by the Trustee from future Royalty income before Trust distributions to the Unitholders will resume. Trust expenditures for the month of March 2007 will be approximately $239,000. Trust expenditures in excess of royalty income received will reduce the Trust’s reserve for Trust expenses. As of February 28, 2007, the reserve for Trust expenses, excluding interest receivable, was approximately $613,000.
The extent of future distributions from the properties in which the Trust has an interest will continue to be dependent on normal factors associated with oil and gas operations such as oil and gas production levels, prices and associated cost, accruals for future abandonment costs, timing and extent of capital expenditures.
