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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
 For the quarterly period ended December 31, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to  .
 Commission file number 000-08565
 Marine Petroleum Trust
  Texas
    
    75-6008017(State or other jurisdiction 
of incorporation or organization)
    
    (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)
 (800) 985-0794
 
 
  þ o
  o o o 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, 2007 and June 30, 2007
    
    
    1Condensed Consolidated Statements of Income and Undistributed Income for the Three and
Six Months Ended December 31, 2007 and 2006
    
    
    2Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2007
and 2006
    
    
    3Notes to Condensed Consolidated Financial Statements
    
    
    4Item 2. Trustee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
    
    
    9PART II. OTHER INFORMATIONItem 1A. Risk Factors
    
    
    10Item 6. Exhibits
    
    
    10Certification of the Corporate Trustee Pursuant Section 302Certification of the Corporate Trustee Pursuant to 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, 2007 and June 30, 2007
 ASSETS
 December 31,
    
    
    June 30,2007
    
    
    2007(Unaudited)
    
    
    (Audited)Current Assets:Cash and cash equivalents
    
    $
    1,488,477
    
    
    $
    1,636,082Oil and gas royalties receivable
    
    
    859,596
    
    
    
    1,186,503Receivable from affiliate
    
    
    306,211
    
    
    
    350,126Total current assets
    
    $
    2,654,284
    
    
    $
    3,172,711Investment in affiliate
    
    
    573,747
    
    
    
    646,963Producing oil and gas properties
    
    
    7
    
    
    
    7$
    3,228,038
    
    
    $
    3,819,681
 LIABILITIES AND TRUST EQUITY
 Current Liabilities  Federal income taxes payable
    
    $
    6,300
    
    
    $
    7,600Trust Equity:Corpus  authorized 2,000,000 units of
beneficial interest, issued 2,000,000 units at
nominal value
    
    
    8
    
    
    
    8Undistributed income
    
    
    3,221,730
    
    
    
    3,812,073Total trust equity
    
    
    3,221,738
    
    
    
    3,812,081$
    3,228,038
    
    
    $
    3,819,681
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MARINE PETROLEUM TRUST AND SUBSIDIARY
 
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 AND UNDISTRIBUTED INCOME
 For the Three and Six Months Ended December 31, 2007 and 2006
(Unaudited)
 Three Months Ended
    
    Six Months EndedDecember 31,
    
    December 31,2007
    
    2006
    
    2007
    
    2006Income:Oil and gas
royalties
    
    $
    937,320
    
    
    $
    1,088,364
    
    
    $
    1,983,419
    
    
    $
    2,284,772Equity in
earnings of affiliate
    
    
    278,930
    
    
    
    269,194
    
    
    
    604,636
    
    
    
    455,280Interest
income18,852
    
    
    
    20,489
    
    
    
    38,796
    
    
    
    39,2461,235,102
    
    
    
    1,378,047
    
    
    
    2,626,851
    
    
    
    2,779,298Expenses:General and
administrative
    
    
    88,836
    
    
    
    72,218
    
    
    
    143,093
    
    
    
    112,444Income before
Federal income
taxes
    
    
    1,146,266
    
    
    
    1,305,829
    
    
    
    2,483,758
    
    
    
    2,666,854Federal income
taxes of
subsidiary
    
    
    2,000
    
    
    
    3,600
    
    
    
    8,700
    
    
    
    7,400Net
income
    
    
    1,144,266
    
    
    
    1,302,229
    
    
    
    2,475,058
    
    
    
    2,659,454Undistributed
income at beginning
of
period
    
    
    3,600,136
    
    
    
    3,003,194
    
    
    
    3,812,074
    
    
    
    2,782,9554,744,402
    
    
    
    4,305,423
    
    
    
    6,287,132
    
    
    
    5,442,409Distributions to
unitholders
    
    
    1,522,672
    
    
    
    1,152,695
    
    
    
    3,065,402
    
    
    
    2,289,681Undistributed
income at end of
period
    
    $
    3,221,730
    
    
    $
    3,152,728
    
    
    $
    3,221,730
    
    
    $
    3,152,728Net income per
unit
    
    $
    0.57
    
    
    $
    0.65
    
    
    $
    1.24
    
    
    $
    1.33Distributions per
unit
    
    $
    0.76
    
    
    $
    0.58
    
    
    $
    1.53
    
    
    $
    1.14Units
outstanding
    
    
    2,000,000
    
    
    
    2,000,000
    
    
    
    2,000,000
    
    
    
    2,000,000
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MARINE PETROLEUM TRUST AND SUBSIDIARY
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 For the Six Months Ended December 31, 2007 and 2006
 (Unaudited)
 Six Months EndedDecember 31,2007
    
    
    2006Cash flows from operating activities:Net income
    
    $
    2,475,058
    
    
    $
    2,659,454Adjustments to reconcile net income to net
cash provided by operating activities:Equity in undistributed earnings of affiliate
    
    
    (604,637
    )
    
    
    (455,280
    )Distributions of earnings of affiliate
    
    
    677,853
    
    
    
    249,504Change in assets and liabilities:Oil and gas royalties receivable
    
    
    326,907
    
    
    
    78,887Receivable from affiliate
    
    
    43,916
    
    
    
    (193,788
    )Income taxes payable
    
    
    (1,300
    )
    
    
    1,400Net cash provided by operating activities
    
    
    2,917,797
    
    
    
    2,340,177Cash flows used in financing
activitiesdistributions to unitholders
    
    
    (3,065,402
    )
    
    
    (2,289,681
    )Net decrease in cash and cash equivalents
    
    
    (147,605
    )
    
    
    50,496Cash and cash equivalents at beginning of period
    
    
    1,636,082
    
    
    
    1,454,283Cash and cash equivalents at end of period
    
    $
    1,488,477
    
    
    $
    1,504,779
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MARINE PETROLEUM TRUST AND SUBSIDIARY
 
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 December 31, 2007
 (Unaudited)
 Accounting Policies
   Distributable Income
 th th
    Undistributed Income
  4




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Item 2. Trustees Discussion and Analysis of Financial Condition and Results of Operations
 Financial Condition  Liquidity and Capital Resources
      Critical Accounting Policies and Estimates
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General
     Summary of Operating Results
    Production (1)Natural
    
    Net
    
    CashQuarter
    
    Oil (bbls)
    
    Gas (mcf)
    
    Income
    
    DistributionDecember 31, 2006
    
    
    7,975
    
    
    
    108,885
    
    
    $
    0.65
    
    
    $
    0.58March 31, 2007
    
    
    13,089
    
    
    
    62,392
    
    
    $
    0.81
    
    
    $
    0.61June 30, 2007
    
    
    8,869
    
    
    
    66,526
    
    
    $
    0.83
    
    
    $
    0.70September 30, 2007
    
    
    8,552
    
    
    
    64,648
    
    
    $
    0.67
    
    
    $
    0.77December 31, 2007
    
    
    7,819
    
    
    
    29,162
    
    
    $
    0.57
    
    
    $
    0.76
 
 (1)
    
    Excludes the Trusts equity interest in Tidelands. 6




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Results of OperationsThree Months Ended December 31, 2007 and 2006
       Three Months Ended December 31,2007
    
    2006
    
    % ChangeOilBarrels sold
    
    
    7,819
    
    
    
    7,975
    
    
    
    (2.0
    )%Average price
    
    $
    86.50
    
    
    $
    57.94
    
    
    
    49.3
    %Natural GasMcf sold
    
    
    29,162
    
    
    
    108,885
    
    
    
    (73.2
    )%Average price
    
    $
    8.95
    
    
    $
    5.75
    
    
    
    55.7
    %
 Results of OperationsSix Months Ended December 31, 2007 and 2006
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Six Months Ended December 31,2007
    
    2006
    
    % ChangeOilBarrels sold
    
    
    16,371
    
    
    
    20,302
    
    
    
    (19.4
    %)Average price
    
    $
    81.73
    
    
    $
    63.17
    
    
    
    29.4
    %Natural GasMcf sold
    
    
    93,810
    
    
    
    163,408
    
    
    
    (42.6
    )%Average price
    
    $
    6.88
    
    
    $
    6.13
    
    
    
    12.2
    %
 State Tax Considerations
   e.g. e.g.
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e.g.
 Forward-Looking Statements
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
  
 Item 4. Controls and Procedures
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PART II. OTHER INFORMATION
 
 Item 1A. Risk Factors
  
 Item 6. Exhibits
  31.1
    
    Certification of the Corporate Trustee pursuant to Section 302
of the Sarbanes-Oxley Act of 2002.32.1
    
    Certification of the Corporate Trustee pursuant to Section 906
of the Sarbanes-Oxley Act of 2002.
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SIGNATURES
  MARINE PETROLEUM TRUSTBank of America, N.A., TrusteeFebruary 14, 2008
    
    By:
    
    /s/ Ron E. HooperRon E. HooperSenior Vice President
 11