***LL&E-ROYALTY TRUST****LL&E ROYALTY TRUST ANNOUNCES NO DISTRIBUTION FOR JULY 2007****LL&E ROYALTY TRUST**   ***TheBank of New York Trust Company, N.A. — Trustee*** **NEWS**      **RELEASE**                    **FOR IMMEDIATE RELEASE**AUSTIN, TEXAS (June 25, 2007) — LL&E Royalty Trust (NYSE SYMBOL-LRT) announced today there will beno Trust income distribution for the month of July 2007 for Unit holders of record on July 5, 2007.This release relates to production for the month of April 2007.Trust related expenses for the month of April 2007 totaled $16,409 while Royalty income for themonth of April 2007 will be $34,948. The Trustee intends to hold the excess funds for use in thepayment of Trust expenses until it becomes reasonably clear that they are no longer necessary.As more fully described in the Trust’s Annual Report on Form 10-K for the year ended December 31,2006, it appears highly likely that distributions to the Trust will be reduced significantly for aperiod of time as a result of the damage from Hurricanes Katrina and Rita to production facilitiesfor properties in which the Trust has an interest. As more fully described in the Trust’s periodicreports filed with the SEC, the Trust Agreement and the related Partnership Agreement provide that,under certain circumstances, the Trustee may establish cash contingency reserves for the payment ofclaims that are likely to be asserted against the Trust. With certain exceptions, any suchreserves are required to be deposited in non-interest bearing accounts. As of June 25, 2007 the netamount reserved is $635,652. The Trustee intends to hold these funds for use in the payment ofTrust expenses until it becomes reasonably clear that they are nolonger necessary. TheTrustee may determine to increase the amount of the reserve at any time in the future, withoutadvance notice to the Unitholders. Any such increase in the amount reserved would reduce futuredistributions.As more fully described in the Annual Report, the Working Interest Owner (“Owner”), under the termsof the Trust Conveyances, is permitted to escrow funds for estimated future costs such asdismantlement costs and capital expenditures for the properties in which the Trust has an interest(Special Cost Escrow). Based on preliminary cost estimates and the most recent reserve report, theOwner believes that the amounts currently held in escrow are significantly less than theanticipated future amounts attributable to the Trust’s share of costs. Consequently, the Owner hasinformed the Trust that Owner plans to escrow for the foreseeable future all proceeds that wouldotherwise be distributed from the South
 

 
Pass 89 and Offshore Louisiana properties. As more fullydescribed in the Trust’s Annual Report, the actual amounts of certain of these costs, including those affecting East Cameron 195,which is included in the Offshore Louisiana properties, appear likely to be substantially increasedover those previously estimated as a result of damage caused by the 2005 hurricanes. The Ownerintends to continue to monitor each of the properties in which the Trust has an interest forpossible changes in relevant factors.The Trustee has participated in discussions with the Working Interest Owner regarding the insurancepolicies carried by the Working Interest Owner in effect at the dates of the various stormsaffecting the properties in which the Trust has an interest. The Working Interest Owner and itsoutside insurance counsel have advised the Trustee that they are in the process of analyzing thescope and applicability of the policies carried by the Working Interest Owner to the various typesof damages that resulted from the storms, and are in the process of discussing these matters withthe carriers. The Trustee has requested additional information about the policies, potentialcoverage to damages affecting the Trust, the likely timing of the resolution of issues relating tothe possible insurance coverage and the various types of damages caused by the storms, and otherinformation regarding the possibility of recovery under any insurance policy that, directly orindirectly, may be for the benefit of the Trust. The Working Interest Owner has undertaken toprovide all such information as it becomes available, but has advised the Trustee that it remainsin discussion with its insurance carriers, and does not yet have reliable information about thescope and applicability of the policies to the properties in which the Trust has an interest or theeffects, if any, on the Trust.The Royalty income for the month of April does not include any proceeds from the Jay Field, SouthPass 89 or Offshore Louisiana properties due to excess production costs. Excess production costsincurred through April 2007 to be recouped from future proceeds at the Jay Field, South Pass andOffshore properties totaled $160,050 $1,001,293 and $6,002,367 respectively.Gross Proceeds prior to deductions for Production Costs for the month of April 2007 by property areas follows: $1,668,713 for Jay Field property, $0 for South Pass 89 property, and $0 for OffshoreLouisiana property.Production Costs for the month of April 2007 by property are as follows: $1,828,763 for Jay Fieldproperty, $1,001,293 for South Pass 89 property and $6,002,367 for Offshore Louisiana property.In April 2007 there was $133,934 and $207,862 withheld in Special Cost Escrow from the South Passand Offshore Louisiana Property, respectively.Fee Lands Royalties for the month of April 2007 totaled $34,948.The Gross Proceeds, Production Costs and Special Cost Escrow numbers stated above relate to eachproperty as a whole. The Trust’s interest in these properties is 50% for Jay Field, 50% for SouthPass 89 and 90% for Offshore Louisiana.Status of the TrustAlthough the Trust cannot predict the effects of the matters described in this press release withany degree of precision, it appears highly likely that distributions to the Trust will be reducedsignificantly for an extended period of time.
 

 
The Trust Agreement provides that the Trust will terminate in the event that the net revenues fallbelow $5,000,000 for two successive years (the “Termination Threshold”). The net revenues for 2006fell below $5,000,000. As a result of the damages to production facilities for properties in whichthe Trust has an interest, and depending on a variety of factors, including the timing and costs ofrepairs, future production and drilling activities, oil and gas prices and other matters, netrevenues to the Trust in 2007 may also be below the Termination Threshold. If net revenues for 2007are below the Termination Threshold, the Trust will terminate. For the first seven months of 2007,the Trust received approximately $1,000,000 in royalty revenue associated with the Jay Field andFee Lands and no royalty revenue from the Offshore Louisiana or South Pass 89 properties. As statedabove, excess production costs for the Jay Field, South Pass 89 and Offshore Louisiana totaled$160,050 $1,001,293 and $6,002,367, respectively. The excess production costs must be recovered bythe Working Interest Owner before any distribution of royalty income will be made to the Trust.Upon termination of the Trust, the Trustee will sell for cash all the assets held in the Trustestate and make a final distribution to unit holders of any funds remaining after all Trustliabilities have been satisfied or funds have been set aside for their payment. There can be noassurance that the net revenues of the Trust in 2007 will be above the Termination Threshold.This press release contains statements that are “forward-looking statements” within the meaning ofSection 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities ExchangeAct of 1934, as amended. All statements contained in this press release, other than statements ofhistorical facts, are “forward-looking statements” for purposes of these provisions. Theseforward-looking statements include the amount and date of any anticipated distribution to unitholders. An investment in Units issued by LL&E Royalty Trust is subject to the risks described inthe Trust’s Annual Report on Form 10-K for the year ended December 31, 2006, and all of its otherfilings with the Securities and Exchange Commission. The Trust’s annual, quarterly and other filedreports are available over the Internet at the SEC’s web site at http://www.sec.gov.The Trust income distribution announcement for the month of August will be made on or about July27, 2007.   **Contact:** **LL&E ROYALTY TRUST**  **The Bank of New York Trust Company, N.A., as Trustee**  **Mike Ulrich**  **(800) 852-1422**  **www.businesswire.com/cnn/lrt.htm**