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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549   Form 10-Q   (Mark One) ☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2019 OR  ☐
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 (Exact name of registrant as specified in its charter)    Texas

75-6008017(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.) c/o The Corporate Trustee: Simmons Bank 2911 Turtle
Creek Blvd. Dallas, Texas 75219 (Address of principal executive offices) (Zip Code) (855) 588-7839 (Registrants telephone number, including area code) None (Former name,
former address and former fiscal year, if changed since last report)   Securities
registered pursuant to Section 12(b) of the Act:  Title of each class

Trading
Symbol(s)

Name of each exchange
on which registeredUnits of Beneficial Interest

MARPS

NASDAQ Capital Market Indicate by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
90 days.    Yes  ☒    No  ☐ Indicate by check mark whether the
registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit such files).    Yes  ☐    No  ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting
company, and emerging growth company in Rule 12b-2 of the Exchange Act. (Check one):  Large accelerated filer

☐

Accelerated filer

☐Non-accelerated filer

☒

Smaller reporting company

☒Emerging Growth Company

☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act).    Yes  ☐    No  ☒ Indicate the number of units of
beneficial interest outstanding as of the latest practicable date: As of February 11, 2020, Marine Petroleum Trust had 2,000,000
units of beneficial interest outstanding.




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MARINE PETROLEUM TRUST INDEX  PageNumberPART I. FINANCIAL INFORMATIONItem 1. Financial Statements


1Condensed Consolidated Statements of Assets, Liabilities and Trust Corpus as of
December 31, 2019 (Unaudited) and June 30, 2019


1Condensed Consolidated Statements of Distributable Income for the Three and Six
 Months Ended December 31, 2019 and 2018 (Unaudited)


2Condensed Consolidated Statements of Changes in Trust Corpus for the Six Months
 Ended December 31, 2019 and 2018 (Unaudited)


3Condensed Consolidated Statements of Changes in Trust Corpus for the Three Months
 Ended December 31, 2019 and 2018 (Unaudited)


4Notes to Condensed Consolidated Financial Statements


5Item 
2. Trustees Discussion and Analysis of Financial Condition and Results of Operations


6Item 
3. Quantitative and Qualitative Disclosures About Market Risk


11Item 4. Controls and Procedures


12PART II. OTHER INFORMATIONItem 1A. Risk Factors


13Item 6. Exhibits


13




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PART I. FINANCIAL INFORMATION Item 1. Financial Statements MARINE PETROLEUM TRUST AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS As of December 31, 2019 and June 30, 2019 ASSETS  December 31,2019


June 30,2019(Unaudited)Current assets:Cash and cash equivalents

$
942,091


$
966,619Federal income tax refundable


2,800



2,800Producing oil and natural gas properties


7



7Total assets

$
944,898


$
969,426LIABILITIES AND TRUST CORPUSCurrent liabilities:Federal income tax payable

$



$
Total current liabilities

$



$
Trust corpus  2,000,000 units of beneficial interest authorized, 2,000,000 units issued at
nominal value

$
944,898


$
969,426$
944,898


$
969,426 See accompanying notes to condensed consolidated financial statements.  1




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MARINE PETROLEUM TRUST AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF DISTRIBUTABLE INCOME For the Three and Six Months Ended December 31, 2019 and 2018 (Unaudited)  Three Months EndedDecember 31,


Six Months EndedDecember 31,2019


2018


2019


2018Income:Oil and natural gas royalties

$
141,361


$
231,996


$
339,609


$
470,730Oil and natural gas royalties from affiliate





$







$
Interest and dividend income


4,287


$
5,308



9,731


$
9,807Total income


145,648



237,304



349,340



480,537Expenses:General and administrative


37,196



94,854



105,349



116,078Distributable income before federal income taxes


108,452



142,450



243,991



364,459Federal income taxes of subsidiary














Distributable income

$
108,452


$
142,450


$
243,991


$
364,459Distributable income per unit

$
0.05


$
0.07


$
0.12


$
0.18Units outstanding


2,000,000



2,000,000



2,000,000



2,000,000 See accompanying notes to condensed consolidated financial statements.  2




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MARINE PETROLEUM TRUST AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TRUST CORPUS For the Six Months Ended December 31, 2019 and 2018 (Unaudited)  Six Months EndedDecember 31,2019


2018Trust corpus, beginning of period

$
969,426


$
987,023Distributable income


243,991



364,459Distributions to unitholders


(268,519
)


(372,090
)Trust corpus, end of period

$
944,898


$
979,392Distributions per unit

$
0.13


$
0.19 See accompanying notes to condensed consolidated financial statements.  3




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MARINE PETROLEUM TRUST AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TRUST CORPUS For the Three Months Ended December 31, 2019 and 2018 (Unaudited)  Three Months EndedDecember 31,2019


2018Trust corpus, beginning of period

$
933,964


$
1,028,809Distributable income


108,452



142,450Distributions to unitholders


(97,518
)


(191,867
)Trust corpus, end of period

$
944,898


$
979,392Distributions per unit

$
0.05


$
0.10 See accompanying notes to condensed consolidated financial statements.  4




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MARINE PETROLEUM TRUST AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS December 31, 2019 (Unaudited) Note 1. Accounting
Policies The financial statements herein include the financial statements of Marine Petroleum Trust (the Trust) and its
wholly owned subsidiary, Marine Petroleum Corporation (MPC, and collectively with the Trust, Marine). The financial statements are condensed and consolidated and should be read in conjunction with Marines Annual Report
on Form 10-K for the fiscal year ended June 30, 2019. The financial statements included herein are unaudited, but in the opinion of Simmons Bank (the Trustee), the Trustee of the Trust, they
include all adjustments necessary for a fair presentation of the results of operations for the periods presented. Operating results for the interim periods reported herein are not necessarily indicative of the results that may be expected for the
fiscal year ending June 30, 2020. Note 2. Basis of Accounting The financial statements of Marine are prepared on the modified cash basis method and are not intended to present Marines financial
position and results of operations in conformity with generally accepted accounting principles in the United States (GAAP). Under the modified cash basis method the financial statements of Marine differ from financial statements prepared
in conformity with GAAP because of the following:  

Royalty income is recognized in the month when received by Marine rather than in the month of production.  

Marines expenses (including accounting, legal, other professional fees, trustees fees and out-of-pocket expenses) are recorded on an actual paid basis in the month paid rather than in the month incurred. Reserves for liabilities that are contingent or uncertain in
amount may also be established if considered necessary, which would not be recorded under GAAP.  

At the time the Trust was established, no determinable market value was available for the assets transferred to
the Trust; consequently, nominal values were assigned. Accordingly, no allowance for depletion has been included. All income from oil and natural gas royalties relate to proved developed oil and natural gas reserves. The modified cash basis method of accounting corresponds to the accounting principles permitted for royalty trusts by the U.S. Securities and
Exchange Commission (the SEC), as specified by Staff Accounting Bulletin Topic 12:E, Financial Statements of Royalty Trusts. Because the Trusts financial statements are prepared on the modified cash basis, as described
above, most accounting pronouncements are not applicable to or do not have a significant impact on the Trusts financial statements. Note 3.
Distributable Income The Trusts Indenture (the Indenture) provides that the Trustee is to distribute all cash in the
Trust, less an amount reserved for payment of accrued liabilities and estimated future expenses, to unitholders of record on the 28th day of March, June, September and December of each year. If
the 28th day falls on a Saturday, Sunday or legal holiday, the payments are to be made on the immediately succeeding business day. Total estimated reserve for future expenses deducted from
calculated distributable income for the three months ended December 31, 2019 was $66,500. As stated under Note 1. Accounting
Policies above, the financial statements in this Quarterly Report on Form 10-Q are the condensed and consolidated financial statements of the Trust and MPC. However, distributable income is paid from the
account balances of the Trust. Distributable income is comprised of (i) royalties from offshore Texas leases owned directly by the Trust, (ii) 98% of the royalties received from offshore Louisiana leases owned by MPC, which are retained by
and delivered to the Trust on a quarterly basis, (iii) cash distributions from the Trusts interest in Tidelands Royalty Trust B (Tidelands), a separate royalty trust, (iv) dividends paid by MPC, less
(v) administrative expenses incurred by the Trust. Distributions fluctuate from quarter to quarter primarily due to changes in oil and natural gas prices and production quantities and expenses incurred.  5




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Note 4. Investment in Affiliate  Tidelands Royalty Trust B At December 31, 2019 and 2018, the Trust owned 32.6% of the outstanding units of beneficial interest in Tidelands. The following summary financial statements have been derived from the unaudited condensed consolidated financial statements of Tidelands: TIDELANDS CONDENSED CONSOLIDATED STATEMENTS OF DISTRIBUTABLE INCOME  Three MonthsEndedDecember 31,2019


Six MonthsEndedDecember 31,2019


Three MonthsEndedDecember 31,2018


Six MonthsEndedDecember 31,2018Income

$
1,750


$
3,901


$
8,990


$
39,409Expenses


4,004



6,908



46,233



83,893Distributable (loss) before Federal income taxes


(2,254
)


(3,007
)


(37,243
)


44,484Federal income taxes of Tidelands subsidiary














Distributable (loss)

$
(2,254
)

$
(3,007
)

$
(37,243
)

$
44,484 Tidelands was a reporting company under the Securities Exchange Act of 1934, as amended. On March 8,
2019, Tidelands terminated the registration of its units under Section 12(g) of the Exchange Act, and suspended its reporting obligations under Section 13(a) of the Exchange Act. As of that date, Tidelands obligations to file certain
reports with the SEC, including annual, quarterly and current reports on Form 10-K, Form 10-Q and
Form 8-K, respectively, were automatically and immediately suspended. Item 2. Trustees Discussion and Analysis of Financial Condition and Results of Operations Organization Marine Petroleum Trust (the
Trust) is a royalty trust that was created in 1956 under the laws of the State of Texas. Effective February 20, 2018, Simmons Bank became corporate trustee of the Trust (the Trustee) as a result of a merger between
Simmons Bank and Southwest Bank, the former corporate Trustee of the Trust. The Trusts Indenture (the Indenture) provides that the term of the Trust will expire on June 1, 2021, unless extended by the vote of the holders of a
majority of the outstanding units of beneficial interest. The Trust is not permitted to engage in any business activity because it was organized for the sole purpose of providing an efficient, orderly and practical means for the administration and
liquidation of rights to payments from certain oil and natural gas leases in the Gulf of Mexico, pursuant to license agreements and amendments between the Trusts predecessors and Gulf Oil Corporation (Gulf). As a result of various
transactions that have occurred since 1956, these interests now are held by Chevron Corporation (Chevron) and its assignees, including Arena Energy, LP (collectively with Chevron and its assignees, the Interest Owners). The
Trust holds title to interests in properties that are situated offshore of Texas. The Trusts wholly owned subsidiary, Marine
Petroleum Corporation (MPC, and collectively with the Trust, Marine), holds title to interests in properties that are situated offshore of Louisiana because at the time the Trust was created, trusts could not hold these
interests under Louisiana law. MPC is prohibited from engaging in a trade or business and only takes those actions that are necessary for the administration and liquidation of its properties.  6




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Marines rights are generally referred to as overriding royalty interests in the oil
and natural gas industry. An overriding royalty interest is created by an assignment by the owner of a working interest in an oil or natural gas lease. The royalty rights associated with an overriding royalty interest terminate when the underlying
lease terminates. All production and marketing functions are conducted by the working interest owners of the leases. Income from overriding royalties is paid to Marine either (i) on the basis of the selling price of oil, natural gas and other
minerals produced, saved or sold, or (ii) at the value at the wellhead as determined by industry standards, when the selling price does not reflect the value at the wellhead. The Trustee assumes that some units of beneficial interest are held by middlemen, as such term is broadly defined in U.S. Treasury Regulations
(and includes custodians, nominees, certain joint owners and brokers holding an interest for a customer in street name). Therefore, the Trustee considers the Trust to be a widely held fixed investment trust (WHFIT) for U.S. federal
income tax purposes. Accordingly, the Trust will provide tax information in accordance with applicable U.S. Treasury Regulations governing the information reporting requirements of the Trust as a WHFIT. The Trustee will provide the required
information and the contact information for the Trustee is below: Simmons Bank 2911 Turtle Creek Blvd., Suite 850 Dallas, Texas 75219 Telephone number: (855) 588-7839 Each unitholder should consult its own tax advisor for compliance with U.S. federal income tax laws and regulations. Liquidity and Capital Resources As
stated in the Indenture, there is no requirement for capital due to the limited purpose of the Trust. The Trusts only obligation is to distribute the distributable income that is actually collected to unitholders. As an administrator of oil
and natural gas royalty interests, the Trust collects royalties monthly, pays administrative expenses and disburses all net royalties that are collected to its unitholders each quarter, subject to the availability of distributable income on the
distribution date after the payment of expenses. The Indenture (and MPCs charter and
by-laws) expressly prohibits the operation of any kind of trade or business. The Trusts oil and natural gas properties are depleting assets that are not being replaced due to the prohibition against
investments. These restrictions, along with other factors, allow the Trust to be treated as a grantor trust. As a grantor trust, all income and deductions for state and U.S. federal income tax purposes generally flow through to each individual
unitholder. The State of Texas imposes a franchise tax, but the Trust does not believe that it is subject to the franchise tax because at least 90% of its income is from passive sources. Please see Marines Annual Report on Form 10-K for the fiscal year ended June 30, 2019 for further information. MPC is a taxable entity that pays state and U.S. federal income taxes and state franchise taxes. However, MPCs income specifically
excludes 98% of the oil and natural gas royalties collected by MPC, which are retained by and delivered to the Trust because of the Trusts net profits interest. The Leases Marine relies on public
records for information regarding drilling and workover operations. The public records available up to the date of this report indicate that there were no new well completions made during the three months ended December 31, 2019 on leases in
which Marine has an interest. As of February 1, 2020, public records also indicated that there were no wells in the process of being drilled or recompleted on other leases in which Marine has an interest. Marine holds an overriding royalty interest that is equal to three-fourths of one percent of the working interest and is calculated on the
value at the well of any oil, natural gas or other minerals produced and sold from 55 leases covering 199,868 gross acres located in the Gulf of Mexico. Marines overriding royalty interest applies only to existing leases and does not apply to
any new leases that the Interest Owners may acquire. The Trust also owns a 32.6% interest in Tidelands Royalty Trust B (Tidelands). Tidelands has an overriding royalty interest in four oil and natural gas leases covering
17,188 gross acres in the Gulf of Mexico. As a result of this ownership, the Trust has the right to receive periodic distributions from Tidelands to the extent Tidelands makes distributions to its unit holders.  7




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Critical Accounting Policies and Estimates In accordance with the Staff Accounting Bulletin Topic 12:E, Financial Statements of Royalty Trusts, Marine uses the modified cash basis
method of accounting. Under this accounting method, royalty income is recorded when received, and distributions to unitholders are recorded when declared by the Trustee of the Trust. Expenses of Marine (including accounting, legal, other
professional fees, trustees fees and out-of-pocket expenses) are recorded on an actual paid basis. Marine also reports distributable income instead of net income
under the modified cash basis method of accounting. Cash reserves are permitted to be established by the Trustee for certain contingencies that would not be recorded under generally accepted accounting principles in the United States. Marine did not have any changes in its critical accounting policies or estimates during the three months ended December 31, 2019. Please
see Marines Annual Report on Form 10-K for the fiscal year ended June 30, 2019 for a detailed discussion of its critical accounting policies. New Accounting Pronouncements Since the
Trust financial statements are prepared on a modified-cash basis, most accounting pronouncements are not applicable to the Trust. No new accounting pronouncements have been adopted or issued that would have a significant impact on Marines
financial statements. General Marines royalty income is derived from the oil and natural gas production activities of third parties. Marines royalty income
fluctuates from period to period based upon factors beyond Marines control, including, without limitation, the number of productive wells drilled and maintained on leases that are subject to Marines interest, the level of production over
time from such wells and the prices at which the oil and natural gas from such wells are sold. Important aspects of Marines
operations are conducted by third parties. Marines royalty income is dependent on the operations of the working interest owners of the leases on which Marine has an overriding royalty interest. The oil and natural gas companies that lease
tracts subject to Marines interests are responsible for the production and sale of oil and natural gas and the calculation of royalty payments to Marine. The only obligation of the working interest owners to Marine is to make monthly
overriding royalty payments that reflect Marines interest in the oil and natural gas sold. Marines distributions are processed and paid by its transfer agent, American Stock Transfer & Trust Company, LLC. The volume of oil and natural gas produced and the selling prices of such oil and natural gas are the primary factors in calculating
overriding royalty payments. Production is affected by the natural production decline of the producing wells, the number of new wells drilled and the number of existing wells that are re-worked and placed back
in production on the leases. Production from existing wells is anticipated to decrease in the future due to normal well depletion. The operators do not provide Marine with information regarding future drilling or
re-working operations that could impact the oil and natural gas production from the leases for which Marine has an overriding royalty interest. Summary of Operating Results During the
six months ended December 31, 2019, excluding the Trusts interest in Tidelands, the Trust realized approximately 86% of its royalty income from the sale of oil and approximately 14% of its royalty income from the sale of natural gas.
During the six months ended December 31, 2018, excluding the Trusts interest in Tidelands, the Trust realized approximately 93% of its royalty income from the sale of oil and approximately 7% of its royalty income from the sale of natural
gas. Royalty income includes royalties from oil and natural gas received from producers.  8




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Distributable income per unit for the six months ended December 31, 2019 was $0.12 as
compared to $0.18 for the comparable period in 2018. Distributions per unit amounted to $0.13 per unit for the six months ended December 31, 2019, a decrease from distributions of $0.19 per unit for the comparable period in 2018. During the six
months ended December 31, 2019, the difference between distributable income per unit and distributions per unit resulted from timing differences between the closing of the financial statements and the determination date of the distribution
amount to unitholders. For the six months ended December 31, 2019, excluding the Trusts interest in Tidelands, oil production
decreased to 4,823 barrels (bbls) from 6,319 bbls and natural gas production increased to 18,691 thousand cubic feet (mcf) from 9,874 mcf as compared to the comparable period in 2018. For the six months ended December 31, 2019, excluding
the Trusts interest in Tidelands, the average price realized for oil decreased to $60.57 per bbl as compared to the price of $69.03 realized for the comparable period in 2018 and the average price realized for natural gas (net of expenses)
decreased to $2.54 per mcf as compared to the average price of $3.47 realized for the comparable period in 2018. The following table
presents the net production quantities of oil and natural gas and distributable income and distributions per unit for the last six quarters.  Net ProductionQuantities(1)Quarter Ended

Oil (bbls)


NaturalGas (mcf)


DistributableIncome Per Unit


DistributionsPer UnitSeptember 30, 2018


3,343



4,193


$
0.11


$
0.09December 31, 2018


2,976



5,681


$
0.07


$
0.10March 31, 2019


2,553



4,151


$
0.05


$
0.08June 30, 2019


2,511



8,122


$
0.08


$
0.06September 30, 2019


2,700



10,542


$
0.07


$
0.09December 31, 2019


2,123



8,150


$
0.05


$
0.05  (1)
Excludes the Trusts interest in Tidelands. Results of OperationsThree Months Ended December 31, 2019 Compared to the Three Months Ended December 31, 2018 Income from oil and natural gas royalties, excluding the Trusts interest in Tidelands, decreased to $141,361 during the three months
ended December 31, 2019 from $231,996 realized for the comparable period in 2018. Royalties decreased for the three months ended December 31, 2019 as compared to the comparable period in 2018 primarily due to a decrease in the production
of oil and a decrease in the prices of oil and natural gas, offset in part by an increase in production of natural gas. Distributable
income decreased to $108,452 for the three months ended December 31, 2019 from $142,450 realized for the comparable period in 2018. Income from oil royalties, excluding the Trusts interest in Tidelands, for the three months ended December 31, 2019 decreased to
$121,686 from $211,858 realized for the comparable period in 2018. The volume of oil sold in the three months ended December 31, 2019 decreased to 2,123 bbls from 2,976 bbls realized for the comparable period in 2018, and the average price
realized for oil decreased to $57.32 per bbl for the three months ended December 31, 2019 from $71.19 per bbl realized for the comparable period in 2018. Income from natural gas royalties (net of expenses), excluding the Trusts interest in Tidelands, for the three months ended
December 31, 2019 decreased to $19,675 from $20,138 for the comparable period in 2018. The volume of natural gas sold in the three months ended December 31, 2019 increased to 8,150 mcf from 5,681 mcf realized for the comparable period in
2018, and the average price realized for natural gas (net of expenses) decreased to $2.41 per mcf for the three months ended December 31, 2019 from $3.54 per mcf realized for the comparable period in 2018.  9




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We did not receive any income from distributions from Tidelands for the three months ended
December 31, 2019 and 2018. We understand that Tidelands does not currently have sufficient production in economic quantities to generate any revenue to be distributed to its unit holders. Accordingly, we do not expect to receive any income
from distributions from Tidelands in future quarters. The following table presents the quantities of oil and natural gas sold and the
average price realized for the three months ended December 31, 2019, and those realized for the comparable period in 2018, excluding the Trusts interest in Tidelands.  Three Months Ended December 31,2019


2018(unaudited)OilBbls sold


2,123



2,976Average price

$
57.32


$
71.19Natural gasMcf sold


8,150



5,681Average price, net of expenses

$
2.41


$
3.54 General and administrative expenses decreased to $37,196 for the three months ended December 31, 2019
from $94,854 for the comparable period of 2018, primarily due to the timing of expenses related to the closing of the annual financial statements which were incurred in the first quarter of the fiscal year 2020 compared to the second quarter of
fiscal year 2019. Results of OperationsSix Months Ended December 31, 2019 Compared to the Six Months Ended December 31, 2018 Income from oil and natural gas royalties, excluding the Trusts interest in Tidelands, decreased to $339,609 during the six months ended
December 31, 2019 from $470,730 realized for the comparable period in 2018. Royalties decreased for the six months ended December 31, 2019 primarily due to a decrease in the price of oil and natural gas and the production of oil, offset by
an increase in the production of natural gas, as compared to the comparable period in 2018. Distributable income decreased to $243,991
for the six months ended December 31, 2019 from $364,459 realized for the comparable period in 2018. Income from oil royalties,
excluding the Trusts interest in Tidelands, for the six months ended December 31, 2019 decreased to $292,101 from $436,443 realized for the comparable period in 2018. The volume of oil sold in the six months ended December 31, 2019
decreased to 4,823 bbls from 6,319 bbls realized for the comparable period in 2018, and the average price realized for oil decreased to $60.57 per bbl for the six months ended December 31, 2019 from $69.03 per bbl realized for the comparable
period in 2018. Income from natural gas royalties (net of expenses), excluding the Trusts interest in Tidelands, for the six months
ended December 31, 2019 increased to $47,508 from $34,287 for the comparable period in 2018. The volume of natural gas sold in the six months ended December 31, 2019 increased to 18,691 mcf from 9,874 mcf realized for the comparable period
in 2018, and the average price realized for natural gas (net of expenses) decreased to $2.54 per mcf for the six months ended December 31, 2019 from $3.47 per mcf realized for the comparable period in 2018. We did not receive any income from distributions from Tidelands for the six months ended December 31, 2019 and 2018. We understand that
Tidelands does not currently have sufficient production in economic quantities to generate any revenue to be distributed to its unit holders. Accordingly, we do not expect to receive any income from distributions from Tidelands in future quarters. The following table presents the quantities of oil and natural gas sold and the average price realized for the six months ended
December 31, 2019, and those realized for the comparable period in 2018, excluding the Trusts interest in Tidelands.  10




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Six Months Ended December 31,2019


2018(unaudited)OilBbls sold


4,823



6,319Average price

$
60.57


$
69.03Natural gasMcf sold


18,691



9,874Average price, net of expenses

$
2.54


$
3.47 General and administrative expenses decreased to $105,349 for the six months ended December 31, 2019 from
$116,078 for the comparable period of 2018, primarily due to decreased printing fees and professional expenses. Forward-Looking Statements The statements discussed in this Quarterly Report on Form 10-Q regarding Marines future financial
performance and results, and other statements that are not historical facts, are forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Exchange Act. This report uses the words
anticipate, believe, budget, continue, estimate, expect, intend, may, plan, or other similar words to identify forward-looking statements.
You should read statements that contain these words carefully because they discuss future expectations, contain projections of Marines financial condition, and/or state other forward-looking information. Actual results may differ
from expected results because of: reductions in price or demand for oil and natural gas, which might then lead to decreased production or impair Marines ability to make distributions; reductions in production due to the depletion of existing
wells or disruptions in service, which may be caused by storm damage to production facilities, blowouts or other production accidents, or geological changes such as cratering of productive formations; changes in regulations; general economic
conditions; actions and policies of petroleum-producing nations; other changes in domestic and international energy markets; the resignation of the Trustee; and the expiration, termination or release of leases subject to Marines interests.
Additional risks are set forth in Marines Annual Report on Form 10-K for the fiscal year ended June 30, 2019. Events may occur in the future that Marine is unable to accurately predict or over which
it has no control. If one or more of these uncertainties materialize, or if underlying assumptions prove incorrect, actual outcomes may vary materially from those forward-looking statements included in this Quarterly Report on Form 10-Q. Except as required by applicable securities laws, Marine does not undertake any obligation to update or revise any forward-looking statements. Website Marine makes available, free of
charge, its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to such
reports at its website at www.marps-marine.com. Each of these reports will be posted on this website as soon as reasonably practicable after such report is electronically filed with, or furnished, to the SEC. Item 3. Quantitative and Qualitative Disclosures About Market Risk There has been no material change from the information provided in Marines Annual Report on
Form 10-K, Item 7A: Quantitative and Qualitative Disclosures About Market Risk, for the fiscal year ended June 30, 2019.  11




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Item 4. Controls and Procedures Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures Simmons Bank, as Trustee of the Trust, is responsible for establishing and maintaining Marines disclosure controls and procedures.
Marines disclosure controls and procedures include controls and other procedures that are designed to ensure that information required to be disclosed by Marine in the reports that it files or submits under the Exchange Act is recorded,
processed, summarized and reported within the time periods specified in the SECs rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be
disclosed by Marine in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Trustee as appropriate to allow timely decisions regarding required disclosure. As of December 31, 2019, the Trustee carried out an evaluation of the effectiveness of the design and operation of Marines
disclosure controls and procedures pursuant to Rules 13a-15(b) and 15d-15(b) of the Exchange Act. Based upon that evaluation, the Trustee concluded that Marines
disclosure controls and procedures were effective as of December 31, 2019. Changes in Internal Control Over Financial Reporting There have not been any changes in Marines internal control over financial reporting during the quarter ended December 31, 2019 that
have materially affected, or are reasonably likely to materially affect, Marines internal control over financial reporting.  12




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PART II. OTHER INFORMATION Item 1A. Risk Factors As of the date of this filing, there have been no material changes from the risk factors previously disclosed in the Risk Factors
in Marines Annual Report filed on Form 10-K for the fiscal year ended June 
30, 2019. Item 6. Exhibits The following exhibits are included herein:  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.  13




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SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.  MARINE PETROLEUM TRUSTSimmons Bank, trustee of Marine Petroleum Trust and not in its individual capacity or otherwiseFebruary 11, 2020



By:

/s/ Ron E. HooperRon E. HooperSenior Vice President