Mesa Royalty Trust (NYSE:MTR) announced the Trust income distribution for the month of August 2007. Unitholders of record on August 31, 2007 will receive distributions amounting to $1,103,042 or $0.591891180 per unit payable on October 31, 2007. The Trust received $550,319 and $79,281 from the New Mexico and Colorado portions of the San Juan Basin Properties, respectively. Royalty income from the Hugoton Properties totaled $472,079.
As previously announced, Pioneer Natural Resources USA, Inc. (“Pioneer USA”) reached an agreement to settle claims made in the lawsuit John Steven Alford and Robert Larrabee, individually and on behalf of a Plaintiff Class v. Pioneer Natural Resources USA, Inc. The plaintiffs in the lawsuit are royalty owners in oil and gas properties located in the Hugoton field, which are owned by Pioneer USA, a subsidiary of Pioneer Natural Resources Company (“Pioneer”). The plaintiffs sued a predecessor company to Pioneer USA asserting various claims relating to alleged improper deductions in the calculation of royalties. Under the terms of the agreement, Pioneer USA has made and will make cash payments to settle the plaintiffs’ claims with respect to production occurring on and before December 31, 2005. Pioneer USA also agreed to adjust the manner in which royalty payments to the class members will be calculated for production occurring on and after January 1, 2006.
The extent of future distributions from the properties in which the Trust has an interest will continue to be dependent on normal factors associated with oil and gas operations such as oil and gas production levels, prices and associated cost, accruals for future abandonment costs, timing and extent of capital expenditures, as well as a recoupment, by Pioneer USA, of approximately $0.9 million payable on September 30, 2007 in connection with certain litigation.
Contacts:
The Bank of New York Trust
Company, N.A., as Trustee
Mike Ulrich, 800-852-1422
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