# Report to Unit Owners

_Source: `DeepSeekOCR_Ardian_pruned_1k/energy-oil-gas-e-p/NYSE_NRT_2022/NYSE_NRT_2022.mmd` · pages 1-7_

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Report to Unit Owners ..... 1-2
Description of Trust Assets ..... 3
Management's Discussion and Analysis ..... 3-7
Critical Accounting Estimates ..... 7-8
Report of Independent Registered Public Accounting Firm ..... 9-10
Financial Statements ..... 11-12
Notes to Financial Statements ..... 13-15
Disclosure Controls and Procedures ..... 16
Internal Control over Financial Reporting ..... 16
Trustees, Administration and Important Contacts ..... 17
2022 Tax Letter (Removable) ..... 18-21

## IMPORTANT TAX INFORMATION

For your convenience, the information necessary to prepare your 2022 tax return is included in the removable "2022 Tax Letter" on Pages 18 through 21.
Please note that there will be no separate mailing of the tax letter.
The 2022 Tax Letter is also available at the Trust's website, www.neort.com.

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## Report to Unit Owners:

## FOURTH QUARTER 2022

Net income for the Trust for the fourth quarter of fiscal 2022 was \(6,884,050, an increase of 428.45% from net income of \)1,302,678 for the fourth quarter of fiscal 2021. The Trust receives nearly all of its royalties under two royalty agreements. The Mobil Agreement is the 4% royalty rate agreement covering gas sales from the western half of a concession in the Federal Republic of Germany (the "Oldenburg concession"). The OEG Agreement is the 0.6667% royalty rate agreement covering gas sales from the entire Oldenburg concession. Total royalties under the Mobil Agreement, including sulfur royalties under the 2% Mobil Sulfur Agreement, for the fourth quarter of fiscal 2022 were increased by positive adjustments from prior periods of (\(995,255), as compared to negative adjustments totaling (\)120,777) for the fourth quarter of fiscal 2021. Total royalties under the OEG Agreement for the fourth quarter of fiscal 2022 were increased by positive adjustments from prior periods of (\(554,793), as compared to negative adjustments of (\)70,329) for the fourth quarter of fiscal 2021. Net income in the fourth quarter of 2022 was higher than the fourth quarter of 2021 due to the impact of these prior period adjustments as well as increases in gas prices. The relevant details for the fourth quarters of fiscal 2022 and 2021 for gas sales under the Mobil and OEG Agreements are shown in the table below.

<table><tr><td colspan="4">Quarterly Gas Data Providing Basis for Fiscal Quarter Royalties</td></tr><tr><td></td><td>3rd Calendar Quarter Ended 9/30/2022</td><td>3rd Calendar Quarter Ended 9/30/2021</td><td>Percentage Change</td></tr><tr><td>Mobil Agreement:</td><td></td><td></td><td></td></tr><tr><td>Gas Sales (Bcf \( ^{1} \) )</td><td>3.499</td><td>3.985</td><td>- 12.20%</td></tr><tr><td>Gas Prices \( ^{2} \)  (Ecents/kWh \( ^{3} \) )</td><td>8.3302</td><td>1.9573</td><td>+325.60%</td></tr><tr><td>Average Exchange Rate \( ^{4} \)</td><td>0.9864</td><td>1.1703</td><td>- 15.71%</td></tr><tr><td>Gas Royalties</td><td>3,287,124</td><td>1,043,662</td><td>+214.96%</td></tr><tr><td>OEG Agreement:</td><td></td><td></td><td></td></tr><tr><td>Gas Sales (Bcf)</td><td>12.951</td><td>13.365</td><td>- 3.10%</td></tr><tr><td>Gas Prices (Ecents/kWh)</td><td>8.4951</td><td>1.9961</td><td>+325.58%</td></tr><tr><td>Average Exchange Rate</td><td>0.9868</td><td>1.1714</td><td>- 15.76%</td></tr><tr><td>Gas Royalties</td><td>1,904,864</td><td>1,441,458</td><td>+331.49%</td></tr></table>

 \( ^{1} \) Billion cubic feet  \( ^{2} \) Gas prices derived from May-July period  \( ^{3} \) Euro cents per Kilowatt hour

 \( ^{4} \) Based on average Euro/dollar exchange rates of cumulative royalty transfers

## FISCAL 2022 REPORT

For fiscal 2022, the Trust's total royalty income increased 286.76% to \(17,800,119 from \)4,602,410 in fiscal 2021. The increase in royalty income was the result of a combination of factors including the reduction in the economic impact of COVID-19 and higher gas prices resulting from the economic disruption following the invasion of Ukraine. As in prior years, the Trust receives information concerning adjustments from the operating companies based on their final calculations of royalties payable during the previous periods as well as other required adjustments. During fiscal 2022 and 2021, these adjustments increased royalty income by \(1,550,020 and decreased royalty income by \)696,189, respectively. During fiscal 2022 and 2021, Mobil sulfur royalties totaled $316,527 and

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$178,367, respectively. The total distribution for fiscal 2022 was $1.83 per unit compared to $0.47 per unit for fiscal 2021.

The Trust's German consultant periodically contacts the representatives of the operating companies to inquire about their planned and proposed drilling and geophysical work and other general matters. The following represents a summary of the most recent information the Trust's German consultant received from representatives of EMPG in December 2022. The Trust is not able to confirm the accuracy of any of the information supplied by the operating companies. In addition, the operating companies are not required to take any of the actions outlined and, if they change their plans with respect to any such actions, they are not obligated to inform the Trust.

The Trust's German consultant has advised the Trust that EMPG has not planned any new wells for calendar 2023 and no major work has been initiated on the exploration side.

Production levels of the OEG fields for 2022 have demonstrated that numerous maintenance efforts, including well cleanup jobs and foam jobs to de-water weak wells, have been conducted to maintain production.

As of the current date and despite the difficult energy situation in Germany, the government has taken no steps to encourage or support domestic development of hydrocarbon-based energy sources. It should be noted that the economic impact on energy prices resulting from the invasion of Ukraine by Russia continues and shows no sign of abating. Under these circumstances, current decisions at both the governmental and corporate levels may change.

Based on the limited information available, Graves & Co. Consulting LLC, the Trust's petroleum consultant ("Graves & Co."), has prepared and submitted their report on the cost depletion percentage applicable to Trust unit owners for calendar 2022. The 2022 cost depletion percentage of 7.8894% and related tax information is contained in the removable "2022 Tax Letter" on Pages 18 through 21 of this report. The calculation of the cost depletion percentage is based on Graves & Co.'s estimate of remaining net proved producing reserves as of October 1, 2022. (The complete text of the report is available in the Trust's 2022 Report on Form 10-K as exhibit 99.1.) The report indicates that net Trust gas reserves increased 94.84% to 10.582 Bcf from 5.431 Bcf on net sales for 2022 of 0.903 Bcf and a positive reserve adjustment of 6.054 Bcf.

Respectfully submitted,

December 30, 2022

John R. Van Kirk
Managing Director