Company: MTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001104659-25-029944
Chunk: 13

Company: MESA ROYALTY TRUST/TX
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 13
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0  
  Total, Proved                                              
  Oil and Condensate        0          9       0          9  
  Natural Gas Liquids       0        337       0        337  
  Gas                      35      4,501       0      4,536  

(1)

According to reserve estimates prepared by Miller and Lents, volumes from these Royalty Properties are not currently profitable enough to generate future Net Proceeds to the Trust, based on the assumptions made and the methodologies used. For these properties, declining well performance coupled with low prices has rendered these wells uneconomic.

(2)

Data from Red Willow was omitted in the Reserve Report, because it operates an immaterial number of wells relative to the total number of wells currently producing from the Royalty Properties. Excess production costs related to Red Willow as of December 31, 2024 are included in Net Proceeds paid to the Trust by Red Willow.

The estimated future net revenue and standardized measure of future net Royalty income, discounted at 10 percent per annum attributable to the Trust’s Royalty as of December 31, 2024 is summarized in the table below. These estimates are provided based upon the economic assumptions furnished by the Working Interest Owners, and are expressed in thousands of dollars:

                                                                                           Simcoe              Hilcorp                  Scout      Total              
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Future Royalty income (1)                                                                            12                   20,059                            20,071  
  Standardized Measure of Future Net Royalty Income, discounted at 10% per annum ﻿(1)                  11                    8,896                             8,907  

(1)

Future income tax expenses were excluded in the preparation of these estimates.

Please read “ Summary Reserve Report from Miller and Lents” attached hereto as Exhibit 99 for more information. The information herein is qualified in its entirety by such Summary Reserve Report.

The Reserve Report was delivered to the Trustee on March 24, 2025. Net reserves attributable to the Trust are calculated from the Trust’s net revenues for each of the Working Interest Owners. To estimate net gas reserves, the Trust’s total net revenue from each of the Working Interest Owners is divided by the net value of 1 Mcf of gas. The net value of 1 Mcf of gas is the gas price per Mcf, plus the condensate value per