Company: GULTU
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023391
Chunk: 8

Company: Gulf Coast Ultra Deep Royalty Trust
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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ursuant
to the Royalty Trust Agreement, the Depositor agreed to provide and maintain a $1.0 million stand-by reserve account or an equivalent
letter of credit for the benefit of the Royalty Trust to enable the Trustee to draw on such reserve account or letter of credit to pay
obligations of the Royalty Trust if its funds are inadequate to pay its obligations at any time. Currently, with the consent of the Trustee,
the Depositor may reduce the reserve account or substitute a letter of credit with a different face amount for the original letter of
credit or any substitute letter of credit. In connection with this arrangement, the Depositor provided $1.0 million to the Royalty Trust.
The $1.0 million, plus interest collected thereon, is reflected as reserve fund cash, with a corresponding reserve fund liability in
the accompanying Statements of Assets, Liabilities and Trust Corpus. Effective December 31, 2024, FCX assigned its right, title and interest
in the stand-by reserve account to HOGA, and HOGA assumed the responsibility to maintain the stand-by reserve account from FCX. The Royalty
Trust did not use any funds from the reserve account to pay administrative expenses during the three- and six-month periods ended June
30, 2025. As of June 30, 2025, the Depositor had not requested a reduction of the reserve account.

Administration.

Compensation
of the Trustee.

   9  

5.
DISTRIBUTIONS

There
were no distributions for the three- and six-month periods ended June 30, 2025 and 2024. Natural gas sales volumes (measured in thousands
of cubic feet, or Mcf), average sales price and net cash proceeds available for distribution for the three- and six-month periods ended
June 30, 2025 and 2024 are set forth in the table below.

                                                    Three Months Ended                                            Six Months Ended                              
                                                    June 30,                                                      June 30,                                      
                                                    2025                                  2024                    2025                                          
  Natural gas sales volumes (Mcf)                                           -                       -                                   -             -         
  Natural gas average sales price (per Mcf)         $                       -             $         -             $                     -             -         
  Gross proceeds                                                            -                       -                                   -             -         
  Post-production costs and specified taxes                                 -                       -                                   -             -         
  Royalty income                                                            -                       -                                   -