Williams Coal Seam Gas Royalty Trust announces cash distribution for Q4
Friday, 06 Nov 2009
Williams Coal Seam Gas Royalty Trust announced that there will be a cash distribution to the holders of its units of beneficial interest of USD 0.022074 per unit, payable November 27th 2009 to unit holders of record on November 16th 2009.
The Trust owns net profits interests in certain proved coal seam gas properties owned by Williams Production Company and located in the San Juan Basin of northwestern New Mexico and southwestern Colorado, including WPC's 35% net profits interest in 5,348 gross acres in La Plata County, Colorado.
WPC reported that production attributable to its gross interests in the properties burdened by the Trust's net profits interests was 2.6 TBTU during the period associated with this quarterly cash distribution compared to 2.6 TBTU during the preceding period. When prior period adjustments are excluded, production in the current quarter for the original wells was 2.6 TBTU compared to 2.6 TBTU in the preceding quarter. The net contract price per MMBTU for this quarter was USD 0.92 per MMBTU as compared to USD 0.75 per MMBTU for the previous quarter.
WPC said that approximately 447 infill wells have been drilled and of those, 437 wells are producing as of September 30th 2009 and are now in "pay” status to the Trust since early June 2008. Production attributable to the infill wells for this quarter was 1.5 TBTU. In accordance with the original conveyance, the Trust is entitled to only 20% of the net profit interests from these wells as opposed to the 60% of the original producing wells. Net proceeds from the infill wells were which includes last quarter's deficit of and did not contribute to this quarter's distribution. Deficits accumulate and no income is recognized until results are positive.
Gross proceeds prior to deductions for production costs for the Q3 of 2009 by property were as follows: USD 2,041,949 for Working Interest Properties, USD 337,009 for Farmout Properties. For Working Interest Properties, production costs for the Q3 2009 were as follows: USD 640,491 for royalties, USD 190,066 for taxes, USD 750,671 for operating costs and USD 756 in excess capital costs. Gross proceeds from the Farmout Properties after deductions as stated above were USD 337,009. A small increase in the price of natural gas contributed in net proceeds to the Trust of USD 479,091 for this quarter compared to net proceeds to the Trust of USD 77,767 in the last quarter.
