DALLAS, May 20, 2015 /PRNewswire/ -- Dominion
Resources Black Warrior Trust (NYSE: DOM) today announced a
quarterly cash distribution to the holders of its units of
beneficial interest of $0.098752 per
unit. The distribution will be payable June 9, 2015 to unitholders of record on
June 1, 2015. Dominion's cash
distribution history, current and prior year financial reports, a
link to filings made with the Securities and Exchange Commission
and more can be found on its website at
http://www.dom-dominion.com/.
This distribution represents the quarterly royalty payment from
Walter Black Warrior Basin LLC ("WBWB") reflecting production from
January 1, 2015 to March 31, 2015. WBWB reported that production
attributable to the Trust's overriding royalty interests was
approximately 404 million cubic feet ("MMcf") during this period
compared to 435 MMcf in the previous quarter. Prices for this
quarter to the trust averaged $2.96
per Mcf compared to $3.96 per Mcf for
the previous quarter. Production declined due to the plugging and
abandonment of non-economic wells.
In March 2012, WBWB notified the
Trustee that it was undertaking a study of the Underlying
Properties on a well-by-well basis to determine the economic
viability of continuing to produce each individual well. WBWB has
plugged and abandoned 22 such wells, 11 in 2012 and 11 in
2013. These wells were very low producing and deemed
non-economical. Additional information about remaining wells has
been disclosed in detail in the Trust's 2014 10-K filed on
March 23, 2015. The additional
decisions on a well by well basis could adversely affect the
Trust's future revenue stream, and if a significant number of wells
are abandoned, it could cause a termination of the Trust. The
total number of wells abandoned in 2014 was 8 wells. Walter
Energy will continue to evaluate the economic viability of each
well on an ongoing basis and provide notice as to any
development.
Dominion Resources Black Warrior Trust, as it does after the end
of each year, had a year-end Reserve Report prepared in accordance
with the Securities and Exchange Commission's
requirements. This report provides an evaluation of the
estimated asset value as of December
31 of each year, which can be used to estimate the remaining
life of the Trust.
The estimated net proved reserves, as of January 1, 2015, attributable to the Trust from
the properties appraised are approximately 11.5 billion cubic feet
of gas with a future net value of approximately $43,617,000 with a 10% discounted value of
$27,489,000.
With the estimated quantities of this year's reserve estimate of
11.5 billion cubic feet of gas remaining, it could be estimated
that the Trust still has a life span of 5 to 6 years. The
report is an exhibit to the Trust's Annual Report on Form 10-K that
was filed on March 23, 2015 and is
available to all unitholders at this time on the Trust website.
Trust owns overriding royalty interests burdening certain proved
developed coal seam gas properties owned by WBWB and located in the
Black Warrior Basin of Alabama. The Trust is a grantor trust
originally formed by Dominion Resources, Inc. The Trust is designed
to provide unitholders with quarterly cash distributions from its
royalty interests in certain coal seam gas properties. The
units are listed on The New York Stock Exchange under the symbol
"DOM".
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SOURCE Dominion Resources Black Warrior Trust