Message #15 From:
NewsBot Date: November 20, 2006 02:31:00 PM
MOSH News Mesa Offshore Trust Announces No Trust Income for November 2006
AUSTIN, Texas--(BUSINESS WIRE)--Mesa Offshore Trust (OTCBB:MOSH) announced that there will be no Trust
income distribution for the month of November 2006 for Unitholders of
record on November 30, 2006.
The Trust did not receive any Royalty income from the Working Interest
Owner for the month of November 2006. As of September 30, 2006, there
was a deficit balance due to the Working Interest Owner of $848,519,
which will be deducted from any future gross proceeds on the Royalty
properties, which deduction will reduce future Royalty income. The
amount withheld of gross proceeds on the Royalty properties by the
Working Interest Owner for future abandonment costs during the month of
November 2006 was $0. As of November 30, 2006 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 $1,400,000, 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, as of September 30, 2006, $919,911 will be withheld
by the Trustee from future Royalty income before Trust distributions to
the unitholders will resume. Trust expenditures for the month of
November 2006 will be approximately $105,000. Trust expenditures in
excess of royalty income received will reduce the Trust’s
reserve for Trust expenses. As of October 31, 2006, the reserve for
Trust expenses, excluding interest receivable, was approximately
$993,000.
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.
