Company: MTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001104659-25-029944
Chunk: 11

Company: MESA ROYALTY TRUST/TX
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 11
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 Royalty properties is not generally available to the owners of royalty interests. Consequently, an accurate count of the number of wells and acreage located on the Royalty Properties cannot readily be obtained from the Working Interest Owners.

Hugoton Royalty Properties

The principal property interest initially conveyed to the Trust was carved out of the working interest in 104,437 net producing acres in the Hugoton field of Kansas currently operated by Scout.

Because the Hugoton field gas is sold in the intrastate and interstate markets, it is subject to state and federal laws and regulations. The Kansas Corporation Commission is the state regulatory agency responsible for overseeing oil and gas operations in the state of Kansas. Hugoton field gas is also affected by the rules and regulations of the Federal Energy Regulatory Commission (the “ FERC”). See “ Regulation and Prices”.

San Juan Basin Royalty Properties

The Trust’s interest in the San Juan Basin Royalty Properties was initially conveyed from PNR’s working interest in 31,328 net producing acres in northwestern New Mexico and southwestern Colorado. ConocoPhillips sold the portion of its interests in the San Juan Basin  -   Colorado Properties to MarkWest Energy Partners, Ltd. (effective January 1, 1993) and Red Willow (effective April 1, 1992). On October 26, 1994, MarkWest Energy Partners, Ltd. sold substantially all of its interest in the San Juan Basin - Colorado Properties to BP. On February 28, 2020, BP completed the sale of all of its interest in the San Juan Basin - Colorado Properties to Simcoe. BP, under a transition services agreement with Simcoe, operated the properties until December 1, 2020.

Drilling

The Trust has been informed by Scout, operator of the Hugoton Royalty Properties, that two new wells were drilled and completed during the year ended December 31, 2022. Per information provided by Scout, these wells were drilled on underlying properties categorized as proved undeveloped reserves and included the drilling of infill development wells. Total capital expenditures were approximately $810,000 for the two combined wells and production began in September 2022. Per Scout, no drilling was conducted in 2024. The Trust has not been informed by any of the other Working Interest Owners of any exploratory or development wells drilled on any Royalty Properties during 2024, 2023 or 2022.

Reserves

A study of the proved oil and gas reserves covering