Nov. 4, 2009 (PR Newswire) --
DALLAS, Nov. 4 /PRNewswire-FirstCall/ -- Williams Coal Seam Gas Royalty Trust (NYSE: WTU) announced today that there will be a cash distribution to the holders of its units of beneficial interest of $0.022074 per unit, payable November 27, 2009 to unitholders of record on November 16, 2009.
The Trust owns net profits interests in certain proved coal seam gas properties owned by Williams Production Company (WPC) and located in the San Juan Basin of northwestern New Mexico (the "Working Interest Properties") and southwestern Colorado, including WPC's 35 percent net profits interest in 5,348 gross acres in La Plata County, Colorado (the "Farmout Properties"). WPC reported that production attributable to its gross interests in the properties burdened by the Trust's net profits interests was 2.6 trillion British thermal units (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 $0.92 per MMBtu as compared to $0.75 per MMBtu for the previous quarter.
WPC also reported approximately 447 infill wells have been drilled and of those, 437 wells are producing as of September 30, 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 ($32,419), which includes last quarter's deficit of ($66,939), 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 third quarter of 2009 by property were as follows: $2,041,949 for Working Interest Properties, $337,009 for Farmout Properties. For Working Interest Properties, production costs for the third quarter 2009 were as follows: $640,491 for royalties, $190,066 for taxes, $750,671 for operating costs and $756 in excess capital costs. Gross proceeds (Net Profit Interest) from the Farmout Properties after deductions as stated above were $337,009.
