Exhibit 99.1
 Report of Independent Registered Public Accounting Firm




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Financial Statements
 CONSOLIDATED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
 December 31, 2007
    
    
    December 31, 2006
    
    
    March 31, 2008(Audited and
    
    
    (Audited and
    
    
    (Unaudited andRestated)
    
    
    Restated)
    
    
    Restated)AssetsCurrent assets:Cash and cash equivalents
    
    $
    2,034,393
    
    
    $
    1,834,550
    
    
    $
    2,088,408Oil, natural gas and other mineral properties
    
    
    2
    
    
    
    2
    
    
    
    2Total assets
    
    $
    2,034,395
    
    
    $
    1,834,552
    
    
    $
    2,088,410Liabilities and Trust CorpusCurrent liabilities:Accounts payable
    
    $
    12,416
    
    
    $
    25,558
    
    
    $
    12,172Federal income taxes payable
    
    
    3,451
    
    
    
    9,351
    
    
    
    7,051Income distributable to unitholders
    
    
    900,030
    
    
    
    720,922
    
    
    
    951,158Total current liabilities
    
    $
    915,897
    
    
    $
    755,831
    
    
    $
    970,381Trust Corpus  authorized 1,386,525
units of beneficial interest, issued
1,386,375 units at nominal value
    
    
    1,118,498
    
    
    
    1,078,721
    
    
    
    1,118,029$
    2,034,395
    
    
    $
    1,834,552
    
    
    $
    2,088,410
  2




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CONSOLIDATED STATEMENTS OF DISTRIBUTABLE INCOME
For the Three Years Ended December 31, 2007
(Audited and Restated)
 2007
    
    
    2006
    
    
    2005Income:Oil and natural gas royalties
    
    $
    4,225,612
    
    
    $
    1,328,824
    
    
    $
    2,624,341Interest income
    
    
    65,439
    
    
    
    41,998
    
    
    
    38,357Total income
    
    
    4,291,051
    
    
    
    1,370,822
    
    
    
    2,662,698Expenses:General and administrative
    
    
    171,807
    
    
    
    135,980
    
    
    
    140,675Distributable income before Federal income taxes
    
    
    4,119,244
    
    
    
    1,234,842
    
    
    
    2,522,023Federal income taxes of subsidiary
    
    
    51,600
    
    
    
    19,027
    
    
    
    17,553Distributable income
    
    $
    4,067,644
    
    
    $
    1,215,815
    
    
    $
    2,504,470Distributable income per unit
    
    $
    2.93
    
    
    $
    0.88
    
    
    $
    1.81Distributions per unit
    
    $
    2.91
    
    
    $
    0.75
    
    
    $
    1.92Units outstanding
    
    
    1,386,375
    
    
    
    1,386,375
    
    
    
    1,386,375
 For the Three Months Ended March 31, 2008 and 2007
(Unaudited and Restated)
 Three Months EndedMarch 31,2008
    
    
    2007Income:Oil and natural gas royalties
    
    $
    1,041,493
    
    
    $
    1,103,670Interest income
    
    
    10,505
    
    
    
    15,277Total income
    
    
    1,051,998
    
    
    
    1,118,947Expenses:General and administrative
    
    
    85,328
    
    
    
    43,684Income before Federal income taxes
    
    
    966,670
    
    
    
    1,075,263Federal income taxes of subsidiary
    
    
    15,600
    
    
    
    12,300Distributable income
    
    $
    951,070
    
    
    $
    1,062,963Distributable income per unit
    
    $
    0.69
    
    
    $
    0.77Distributions per unit
    
    $
    0.69
    
    
    $
    0.69Units outstanding
    
    
    1,386,375
    
    
    
    1,386,375
  3




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CONSOLIDATED STATEMENTS OF CHANGES IN TRUST CORPUS
For the Three Years Ended December 31, 2007
(Audited and Restated)
 2007
    
    
    2006
    
    
    2005Trust corpus, beginning of year
    
    $
    1,078,721
    
    
    $
    902,713
    
    
    $
    1,061,652Distributable income
    
    
    4,067,644
    
    
    
    1,215,815
    
    
    
    2,504,470Distributions to unitholders
    
    
    4,027,867
    
    
    
    1,039,807
    
    
    
    2,663,409Trust corpus, end of year
    
    $
    1,118,498
    
    
    $
    1,078,721
    
    
    $
    902,713
 For the Three Months Ended March 31, 2008 and 2007
(Unaudited and Restated)
 Three Months EndedMarch 31,2008
    
    
    2007Trust corpus, beginning of period
    
    $
    1,118,498
    
    
    $
    1,078,721Distributable income
    
    
    951,070
    
    
    
    1,062,963Distributions to unitholders
    
    
    951,539
    
    
    
    953,784Trust corpus, end of period
    
    $
    1,118,029
    
    
    $
    1,187,900
  4




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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL
              5




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2007
    
    2006
    
    2005Devon Energy Production Company
    
    
    74
    %
    
    
    59
    %
    
    
    90
    %Newfield Exploration Co.
    
    
    10
    %
    
    
    
    
    
    
    NOEX Energy, Inc.
    
    
    7
    %
    
    
    26
    %
    
    
    W & T Offshore
    
    
    6
    %
    
    
    13
    %
    
    
    6
    %Others
    
    
    3
    %
    
    
    2
    %
    
    
    4
    %100
    %
    
    
    100
    %
    
    
    100
    %
 (2) CHANGE IN ACCOUNTING METHOD
   6




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
    
    Oil and gas royalties receivable
    
    Undistributed income
  
    
    Net income
    
    Undistributed income at beginning of period (year)
    
    Distributions to unitholders
    
    Undistributed income at end of period (year)
    
    Net income per unit
  
    
    Distributable income
    
    Distributable income per unit
  
    
    Trust corpus, beginning of period (year)
    
    Distributable income
    
    Distributions to unitholders
    
    Trust corpus, end of period (year)
 7




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CONSOLIDATED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
 Assets
 As Reported UnderAs Originally Reported
    
    Effect of
    
    Modified Cash BasisUnder Accrual Method
    
    Accounting Change
    
    MethodAs of December 31,
2007 (Audited)Total assets (1)
    
    $
    2,859,881
    
    
    $
    (825,486
    )
    
    $
    2,034,395As of December 31,
2006
(Audited)Total assets (1)
    
    $
    2,665,574
    
    
    $
    (831,022
    )
    
    $
    1,834,552As of March 31, 2008
(Unaudited)Total assets (1)
    
    $
    2,985,774
    
    
    $
    (897,364
    )
    
    $
    2,088,410
 
 (1)
    
    Oil and gas royalties receivables are not reported as an asset under the modified cash
basis method. As a result, total assets have been reduced by the amount of oil and gas
royalties receivables previously reported. Liabilities and Trust Corpus
 As Reported UnderAs Originally Reported
    
    
    Effect of
    
    
    Modified Cash BasisUnder Accrual Method
    
    
    Accounting Change
    
    
    MethodAs of December 31, 2007
(Audited)Total trust equity (1)
    
    $
    1,943,984
    
    
    $
    (825,486
    )
    
    $
    1,118,498Total liabilities and trust corpus (1)
    
    $
    2,859,881
    
    
    $
    (825,486
    )
    
    $
    2,034,395As of December 31, 2006
(Audited)Total trust equity (1)
    
    $
    1,909,743
    
    
    $
    (831,022
    )
    
    $
    1,078,721Total liabilities and trust corpus (1)
    
    $
    2,665,574
    
    
    $
    (831,022
    )
    
    $
    1,834,552As of March 31, 2008
(Unaudited)Total trust equity (1)
    
    $
    2,015,393
    
    
    $
    (897,364
    )
    
    $
    1,118,029Total liabilities and trust corpus (1)
    
    $
    2,985,774
    
    
    $
    (897,364
    )
    
    $
    2,088,410
 
 (1)
    
    Oil and gas royalties receivables are not reported as trust equity under the modified
cash basis method. As a result, total trust equity and total liabilities and trust corpus
have been reduced by the amount of oil and gas royalties receivables previously reported.  8




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CONSOLIDATED STATEMENTS OF DISTRIBUTABLE INCOME
 As Reported UnderAs Originally Reported
    
    Effect of
    
    Modified Cash BasisUnder Accrual Method
    
    Accounting Change
    
    MethodAs of December 31, 2007
(Audited)Oil and gas royalties
    
    $
    4,220,076
    
    
    $
    5,536
    
    
    $
    4,225,612Total income
    
    $
    4,285,515
    
    
    $
    5,536
    
    
    $
    4,291,051Income before Federal
income taxes
    
    $
    4,113,708
    
    
    $
    5,536
    
    
    $
    4,119,244As of December 31, 2006
(Audited)Oil and gas royalties
    
    $
    2,025,412
    
    
    $
    (696,588
    )
    
    $
    1,328,824Total income
    
    $
    2,067,410
    
    
    $
    (696,588
    )
    
    $
    1,370,822Income before Federal
income taxes
    
    $
    1,931,430
    
    
    $
    (696,588
    )
    
    $
    1,234,842As of December 31, 2005
(Audited)Oil and gas royalties
    
    $
    2,362,759
    
    
    $
    261,582
    
    
    $
    2,624,341Interest and other
income (1)
    
    $
    36,954
    
    
    $
    1,403
    
    
    $
    38,357Total income
    
    $
    2,399,713
    
    
    $
    262,985
    
    
    $
    2,662,698Income before Federal
income taxes
    
    $
    2,259,038
    
    
    $
    262,985
    
    
    $
    2,522,023As of the Three Months
Ended March 31, 2008
(Unaudited)Oil and gas royalties
    
    $
    1,113,371
    
    
    $
    (71,878
    )
    
    $
    1,041,493Total income
    
    $
    1,123,876
    
    
    $
    (71,878
    )
    
    $
    1,051,998Income before Federal
income taxes
    
    $
    1,038,548
    
    
    $
    (71,878
    )
    
    $
    966,670As of the Three Months
Ended March 31, 2007
(Unaudited)Oil and gas royalties
    
    $
    991,139
    
    
    $
    112,531
    
    
    $
    1,103,670Total income
    
    
    1,006,416
    
    
    $
    112,531
    
    
    $
    1,118,947Income before Federal
income taxes
    
    $
    962,731
    
    
    $
    112,531
    
    
    $
    1,075,263
 
 (1)
    
    This change relates to interest income that was previously accrued for in 2004 but was
not received until 2005.  9




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(3) SUPPLEMENTAL INFORMATION RELATING TO OIL AND NATURAL GAS RESERVES (UNAUDITED)
  For Year Ended December 31,2007
    
    2006
    
    2005Net production quantities:Oil (bbls)
    
    
    7,071
    
    
    
    5,789
    
    
    
    6,557Natural gas (mcf)
    
    
    515,260
    
    
    
    141,572
    
    
    
    310,758
 (4) SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED)
  Oil and
    
    
    
    
    
    
    DistributableNatural Gas
    
    
    Distributable
    
    
    Income PerRoyalties
    
    
    Income
    
    
    UnitQuarter ended:March 31, 2007
    
    $
    1,103,670
    
    
    $
    1,062,963
    
    
    $
    0.77June 30, 2007
    
    
    1,095,667
    
    
    
    1,051,249
    
    
    
    0.76September 30, 2007
    
    
    1,136,840
    
    
    
    1,100,420
    
    
    
    0.79December 31, 2007
    
    
    889,435
    
    
    
    853,012
    
    
    
    0.62$
    4,225,612
    
    
    $
    4,067,644
    
    
    $
    2.94Quarter ended:March 31, 2006
    
    $
    91,461
    
    
    $
    63,738
    
    
    $
    0.05June 30, 2006
    
    
    225,241
    
    
    
    199,912
    
    
    
    0.14September 30, 2006
    
    
    262,430
    
    
    
    233,284
    
    
    
    0.17December 31, 2006
    
    
    749,692
    
    
    
    718,881
    
    
    
    0.52$
    1,328,824
    
    
    $
    1,215,815
    
    
    $
    0.88
 (5) TEXAS FRANCHISE TAX
  10




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e.g. e.g.
   11