Attached files
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Exhibit 99
PR NEWSWIRE
NORTH EUROPEAN OIL ROYALTY TRUST ANNOUNCES
THE DISTRIBUTION FOR THE THIRD QUARTER OF FISCAL 2016
Red Bank, N.J. July 29, 2016 The Trustees of North European Oil Royalty
Trust (NYSE-NRT) announced today a quarterly distribution of $0.15 per unit
for the third quarter of fiscal 2016, payable on August 31, 2016 to holders
of record on August 19, 2016. Natural gas sold during the second calendar
quarter of 2016 is the primary source of royalty income on which the August
2016 distribution is based. John R. Van Kirk, Managing Director, reported
that this year's quarterly distribution of $0.15 per unit is 58.33%, or $0.21
per unit, lower than the distribution of $0.36 per unit for the third quarter
of fiscal 2015.
The Trust receives nearly all of its royalties under two royalty agreements.
The Mobil Agreement, which is the higher royalty rate agreement, covers gas
sales from the western half of the Oldenburg concession. The OEG Agreement,
which is the lower royalty rate agreement, covers gas sales from the entire
Oldenburg concession. The factors determining the amount of gas royalties
payable under the two agreements from the preceding calendar quarter are
shown in the table below comparing the second calendar quarters of 2016 and
2015. Further details will be available in the Trust's quarterly report on
Form 10-Q which will be available through the SEC or on the Trust's website,
www.neort.com, on or about August 31, 2016.
Factors Determining Gas Royalties Payable
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2nd Calendar Qtr. 2nd Calendar Qtr. Percentage
Ended 6/30/2016 Ended 6/30/2015 Change
---------------- ---------------- ----------
Mobil Agreement
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Gas Sales (Bcf)(1) 4.916 7.382 - 33.41%
Gas Prices (Ecents/Kwh)(2) 1.5363 2.0017 - 23.25%
Average Exchange Rate (3) 1.1185 1.1113 + 0.65%
Gas Royalties $969,471 $1,884,107 - 48.54%
OEG Agreement
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Gas Sales (Bcf) 17.520 22.591 - 22.45%
Gas Prices (Ecents/Kwh) 1.5667 2.0401 - 23.20%
Average Exchange Rate 1.1159 1.1159 - 0.00%
Gas Royalties $408,480 $796,230 - 48.70%
(1) Billion cubic feet
(2) Euro cents per Kilowatt hour
(3) Based on average exchange rates of cumulative royalty transfers
The Trust receives royalty payments for each fiscal quarter prospectively
based on actual royalties payable for the preceding calendar quarter. In the
final month of the Trust's fiscal quarter, the operating companies determine
any underpayment or overpayment based upon the actual amount of royalties
that should have been paid to the Trust. Any underpayment is added to the
amount of royalties paid during the current fiscal quarter. Any overpayment
is deducted from the amount of royalties to be paid in the first month of the
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Trust's next fiscal quarter. The operating companies may make further
adjustments during the quarter based on the recalculation of royalties
payable for prior periods, and the Trust has no means of predicting such
adjustments.
The table below shows an estimate of the amount of royalties anticipated to
be received in the fourth quarter of fiscal 2016 based on the actual amount
of royalties that were payable to the Trust for the second calendar quarter
of 2016. Amounts in dollars are based on the current exchange rate of
1.116858. Actual royalty income in dollars is valued based on exchange
rates on the day funds are transferred. The August estimate below includes
a negative adjustment from the prior quarter of Euros 440,259 and the delayed
payment of Mobil sulfur royalty of Euros 35,515 for the second quarter of
2016. In addition, the Trust's German accountants have completed their
examination of the royalty payments by the operating companies for 2013-2014
and have reported a combination of positive and negative adjustments
potentially totaling a negative Euros 130,000. The Trust is disputing the
negative portion of this total amounting to Euros 158,000. We cannot
estimate when the dispute will be resolved, but there is the possibility of
a negative adjustment in the upcoming quarter.
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Estimated Combined Combined Combined Dollar
Royalties Royalties Royalties Royalties in
Anticipated in In Euros In Dollars Cents per Unit
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August Euros 34,308 $ 38,317 $0.0042
September Euros 439,051 $ 490,358 $0.0534
October Euros 439,051 $ 490,358 $0.0534
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The cumulative 12-month distribution, which includes the August 2016
distribution and the three prior quarterly distributions, is $0.78 per unit.
This 12-month cumulative distribution is 45.45% or $0.65 per unit lower than
the prior 12-month distribution of $1.43 per unit. The Trust makes quarterly
distributions to unit owners during the months of February, May, August and
November.
Contact John R. Van Kirk, Managing Director, tel.: (732) 741-4008, email:
jvankirk@neort.com. The Trust's press releases and other pertinent
information are available at the Trust's website: www.neort.com
