Company: GULTU
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001201
Chunk: 34

Company: Gulf Coast Ultra Deep Royalty Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 34
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 estimate is a function of the quality of available data and of engineering and geological interpretation
and judgment. Because all natural gas reserve estimates are to some degree subjective, the quantities of natural gas that are ultimately
recovered, production and specified post-production costs and taxes allowable under the Royalty Trust Agreement and future natural gas
sales prices may all differ from those assumed in these estimates. In addition, different reserve engineers may make different estimates
of reserve quantities and cash flows based upon the same available data. Therefore, the standardized measure of discounted future net
cash flows (Standardized Measure) shown below represents estimates only and should not be construed as the current market value of the
estimated reserves attributable to the overriding royalty interest associated with the subject interests. In this regard, the information
set forth in the following tables includes revisions of reserve estimates attributable to proved properties and any adjustments in the
projected economic life of such properties resulting from changes in product prices.

                                                  Natural Gas              
                                                  (MMcf) (a)               
                                                  2024                     
  Proved reserves:                                                         
  Balance at beginning of year                                     1,346   
  Revisions of previous estimates (b)                              (1,245  
  Extensions and discoveries                                       -       
  Acquisition of reserves in-place                                 -       
  Sale of reserves in-place                                        -       
  Purchase of reserves in-place                                    -       
  Production                                                       (101    
  Balance at end of year                                           -       
  Proved developed reserves at end of year                         -       
  Proved undeveloped reserves at end of year                       -       

  (a)      MMcf                                                                                                                               
  (b)      For                                                                                                                                

Standardized
Measure. The Standardized Measure related to proved reserves is zero for 2024 and 2023 due to shutting in the well and subsequently beginning
operations to plug and abandon the well. Estimates of future net revenues from the Royalty Trust’s proved natural gas properties
and the present value thereof were made using the twelve-month average of the first-day-of-the-month historical reference prices as adjusted
for location and quality differentials, which are held constant throughout the life of the properties, except where such guidelines permit
alternate treatment, including the use of fixed and determinable contractual price escalations. Future gross revenues were reduced by
estimated specified post-production costs and taxes in accordance with the Royalty Trust Agreement. Future income taxes are not presented
given the Royalty Trust’s status as a non-taxable “pass through” entity. See Note 4.