Company: GULTU
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023391
Chunk: 5

Company: Gulf Coast Ultra Deep Royalty Trust
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 5
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 an interest, as McMoRan previously
had relinquished, allowed to expire or sold all of the other subject interests.

Effective
December 31, 2024 (the Effective Date), FCX, McMoRan and HOGA entered into an Assignment and Assumption Agreement and Bill of Sale, pursuant
to which (1) FCX assigned to HOGA, and HOGA assumed, all of the financial and other obligations of FCX as depositor under the Royalty
Trust Agreement, and (2) McMoRan assigned to HOGA, and HOGA assumed, all of the rights and obligations of McMoRan as grantor under the
Royalty Trust Agreement and the master conveyance that were not previously assumed by HOGA at the time of the Highlander Sale (collectively,
the Assignment). Notwithstanding the Assignment, FCX remains obligated to perform the financial and other obligations owed to the Royalty
Trust by the depositor under the Royalty Trust Agreement, if HOGA were to be unable to fully perform such obligations in the future.
In this Form 10-Q, the “ Depositor” refers to FCX, for all periods ending prior to the Effective Date, and to HOGA, for all
periods beginning on and after the Effective Date; and the “ Grantor” refers to McMoRan, for all periods ending prior to the
Effective Date, and to HOGA, for all periods beginning on and after the Effective Date.

3.
OVERRIDING ROYALTY INTERESTS

The
onshore Highlander subject interest is the only subject interest in which the Royalty Trust holds an overriding royalty interest. There
were no amortization charges related to production volumes associated with the onshore Highlander subject interest during the three-
and six-month periods ended June 30, 2025 and 2024, as the Royalty Trust fully impaired the carrying value of the onshore Highlander
subject interest during the year ended December 31, 2023.

   7  

HOGA
has a 72 percent working interest and an approximate 48 percent net revenue interest in the onshore Highlander subject interest. The
Royalty Trust holds a 3.6 percent overriding royalty interest in the onshore Highlander subject interest. HOGA is the operator of the
onshore Highlander subject interest.

As
previously disclosed, the sole well producing from the onshore Highlander subject interest experienced an operational issue