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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 Form 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
   o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
  Commission file number 000-08565
 Marine Petroleum Trust
  Texas
(State or other jurisdiction
of incorporation or organization)
    
    75-6008017
(I.R.S. Employer
Identification No.)
 Bank of America, N.A.
P.O. Box 830650, Dallas, Texas
(Address of principal executive offices)
    
    75283-0650
(Zip Code)
  
 
  þ o
  Large accelerated filer £
    
    Accelerated filer £
    
    Non-accelerated filer þ
  o þ




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MARINE PETROLEUM TRUST
 INDEX
 PageNumberPART I. FINANCIAL INFORMATIONItem 1.
    
    Financial Statements (Unaudited)
    
    
    1Condensed Consolidated Balance Sheets as of December 31, 2005 and June 30, 2005
    
    
    1Condensed Consolidated Statements of Income and Undistributed Income for the Three Months
and Six months Ended December 31, 2005 and 2004
    
    
    2Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2005
and 2004
    
    
    3Notes to Condensed Consolidated Financial Statements
    
    
    4Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    5Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    9Item 4.
    
    Controls and Procedures
    
    
    10PART II. OTHER INFORMATIONItem 6.
    
    Exhibits
    
    
    11Certification of Principal Accounting Officer - Section 302Certification of Corporate Trustee - Section 302Certification of Principal Accounting Officer - Section 906Certification of Corporate Trustee - Section 906




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PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 MARINE PETROLEUM TRUST AND SUBSIDIARY
 
 CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2005 and June 30, 2005
(Unaudited)
 December 31,
    
    
    June 30,2005
    
    
    2005ASSETSCurrent Assets:Cash and cash equivalents
    
    $
    1,228,994
    
    
    $
    1,171,006Oil and gas royalties receivable
    
    
    224,316
    
    
    
    970,334Receivable from affiliate
    
    
    253,326
    
    
    
    205,500Interest receivable
    
    
    
    
    
    
    1,426Total current assets
    
    $
    1,706,636
    
    
    $
    2,348,266Investment in U.S. Treasury and agency bonds
    
    
    
    
    
    
    200,000Investment in affiliate
    
    
    338,415
    
    
    
    530,349Office equipment, at cost less accumulated depreciation
    
    
    1,832
    
    
    
    2,400Producing oil and gas properties
    
    
    7
    
    
    
    7$
    2,046,890
    
    
    $
    3,081,022LIABILITIES AND TRUST EQUITYCurrent Liabilities  Federal income taxes payable
    
    $
    1,200
    
    
    $
    1,000Trust Equity:Corpus  authorized 2,000,000 units of
beneficial interest,
issued 2,000,000 units at nominal value
    
    
    8
    
    
    
    8Undistributed income
    
    
    2045,682
    
    
    
    3,080,014Total trust equity
    
    
    2,045,690
    
    
    
    3,080,022$
    2,046,890
    
    
    $
    3,081,022
  1




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MARINE PETROLEUM TRUST AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND UNDISTRIBUTED INCOME
 For the Three Months and Six Months Ended December 31, 2005 and 2004
(Unaudited)
 Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2005
    
    
    2004
    
    
    2005
    
    
    2004Income:Oil and gas royalties
    
    $
    695,164
    
    
    $
    867,694
    
    
    $
    1,526,699
    
    
    $
    1,933,432Equity in earnings of affiliate
    
    
    55,589
    
    
    
    178,226
    
    
    
    310,040
    
    
    
    255,704Interest income
    
    
    14,408
    
    
    
    5,388
    
    
    
    26,398
    
    
    
    10,196765,161
    
    
    
    1,051,308
    
    
    
    1,863,137
    
    
    
    2,199,332Expenses:General and administrative
    
    
    48,305
    
    
    
    49,571
    
    
    
    98,219
    
    
    
    100,328Income before Federal income taxes
    
    
    716,856
    
    
    
    1,001,737
    
    
    
    1,764,918
    
    
    
    2,099,004Federal income taxes of subsidiary
    
    
    2,400
    
    
    
    
    
    
    
    3,200
    
    
    
    Net income
    
    
    714,456
    
    
    
    1,001,737
    
    
    
    1,761,718
    
    
    
    2,099,004Undistributed income at beginning of year.
    
    
    2,909,452
    
    
    
    2,723,660
    
    
    
    3,080,014
    
    
    
    2,916,1963,623,908
    
    
    
    3,725,397
    
    
    
    4,841,732
    
    
    
    5,015,200Distributions to unitholders.
    
    
    1,578,226
    
    
    
    1,117,240
    
    
    
    2,796,050
    
    
    
    2,407,043Undistributed income at end of year
    
    $
    2,045,682
    
    
    $
    2,608,157
    
    
    $
    2,045,682
    
    
    $
    2,608,157Net income per unit
    
    $
    0.36
    
    
    $
    0.50
    
    
    $
    0.88
    
    
    $
    1.05Distributions per unit
    
    $
    0.79
    
    
    $
    0.56
    
    
    $
    1.40
    
    
    $
    1.20
  2




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MARINE PETROLEUM TRUST AND SUBSIDIARY
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended December 31, 2005 and 2004
(Unaudited)
 Six Months EndedDecember 31,2005
    
    
    2004Cash flows from operating activities:Net income
    
    $
    1,761,718
    
    
    $
    2,099,004Adjustments to reconcile net income to net cash provided
by operating activities:Depreciation
    
    
    568
    
    
    
    Equity in undistributed earnings of affiliate
    
    
    191,934
    
    
    
    (75,104
    )Amortization of premium
    
    
    
    
    
    
    4,606Change in assets and liabilities:Oil and gas royalties receivable
    
    
    746,018
    
    
    
    242,522Receivable from affiliate
    
    
    (47,826
    )
    
    
    (53,278
    )State and federal taxes refundable
    
    
    
    
    
    
    578Interest receivable
    
    
    1,426
    
    
    
    669Accounts payable
    
    
    200
    
    
    
    Net cash provided by operating activities
    
    
    2,654,038
    
    
    
    2,218,997Cash flows from investing activitiesproceeds from U.S. Agency
Bonds
    
    
    200,000
    
    
    
    100,000Cash flows from financing activitiesdistributions to unitholders
    
    
    (2,796,050
    )
    
    
    (2,407,043
    )Net increase (decrease) in cash and cash equivalents
    
    
    57,988
    
    
    
    (88,046
    )Cash and cash equivalents at beginning of period
    
    
    1,171,006
    
    
    
    1,202,855Cash and cash equivalents at end of period
    
    $
    1,228,994
    
    
    $
    1,114,809
  3




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MARINE PETROLEUM TRUST AND SUBSIDIARY
 
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2005
(Unaudited)
 Accounting Policies
   Distributable Income
 th th
         Undistributed Income
  4




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations
 Financial Condition  Liquidity and Capital Resources
      Critical Accounting Policies
   5




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General
   Current operations and hurricane damage.
        Summary Review of Operating Results
   6




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Production (1)Natural
    
    Net
    
    CashQuarter
    
    Oil (bbls)
    
    Gas (mcf)
    
    Income
    
    DistributionDecember 31, 2004
    
    14,375
    
    41,003
    
    .50
    
    
    .56March 31, 2005
    
    9,633
    
    67,482
    
    .58
    
    
    .54June 30, 2005
    
    13,362
    
    101,290
    
    .74
    
    
    .54September 30, 2005
    
    7,787
    
    52,298
    
    .52
    
    
    .61December 31, 2005
    
    6,363
    
    32,537
    
    .36
    
    
    .79
 
 (1)
    
    Excludes the Trusts equity interest in Tidelands.   Results of OperationsThree Months Ended December 31, 2005 and 2004
    7




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Three Months Ended December 31,2005
    
    
    2004OILBarrels sold
    
    
    6,363
    
    
    
    14,375Average price
    
    $
    58.36
    
    
    $
    41.94NATURAL GASMcf sold
    
    
    32,537
    
    
    
    41,003Average price
    
    $
    9.95
    
    
    $
    6.46
 Results of OperationsSix Months Ended December 31, 2005 and 2004
     8




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Six Months Ended December 31,2005
    
    
    2004OILBarrels sold
    
    
    14,150
    
    
    
    26,137Average price
    
    $
    58.86
    
    
    $
    42.85NATURAL GASMcf sold
    
    
    84,835
    
    
    
    141,179Average price
    
    $
    8.18
    
    
    $
    5.76
 Forward-Looking Statements
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
     9




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Item 4. Controls and Procedures
  10




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PART II. OTHER INFORMATION
 
 Item 6. Exhibits
  31.1
    
    Certification of the Principal Accounting Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.31.2
    
    Certification of the Corporate Trustee pursuant to Section 302
of the Sarbanes-Oxley Act of 2002.32.1
    
    Certification of the Principal Accounting Officer pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.32.2
    
    Certification of the Corporate Trustee pursuant to Section 906
of the Sarbanes-Oxley Act of 2002.
 11




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SIGNATURES
  MARINE PETROLEUM TRUST
Bank of America, N.A., TrusteeFebruary 14, 2006
    By:
    /s/ RON E. HOOPERRon E. HooperSenior Vice PresidentFebruary 14, 2006
    By:
    /s/ R. RAY BELLR. Ray BellPrincipal Accounting Officer 12




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Marine Petroleum Trust
c/o Bank of America, N.A.
P.O. Box 830650
Dallas, Texas 75283-0650
 14