Attached files
| file | filename |
|---|---|
| 10-K - FORM 10-K - PERMIAN BASIN ROYALTY TRUST | d70898e10vk.htm |
| EX-23.1 - EX-23.1 - PERMIAN BASIN ROYALTY TRUST | d70898exv23w1.htm |
| EX-32.1 - EX-32.1 - PERMIAN BASIN ROYALTY TRUST | d70898exv32w1.htm |
| EX-31.1 - EX-31.1 - PERMIAN BASIN ROYALTY TRUST | d70898exv31w1.htm |
| EX-99.1 - EX-99.1 - PERMIAN BASIN ROYALTY TRUST | d70898exv99w1.htm |
Exhibit 99.2
Cawley, Gillespie & Associates, Inc.
petroleum consultants
petroleum consultants
| AUSTIN OFFICE: | MAIN OFFICE: | HOUSTON OFFICE: | ||
| 9601 AMBERGLEN BLVD., SUITE 117 | 306 WEST 7TH STREET, SUITE 302 | 1000 LOUISIANA, SUITE 625 | ||
| AUSTIN, TEXAS 78729 | FORT WORTH, TEXAS 76102-4987 | HOUSTON, TEXAS 77002-5008 | ||
| (512) 249-7000 | (817) 336-2461 | (713) 651-9944 | ||
| FAX (512) 233-2618 | FAX (817) 877-3728 | FAX (713) 651-9980 |
February 10, 2010
Mr. Ron Hooper
Permian Basin Royalty Trust
901 Main Street, 17th Floor
Dallas, Texas 75202 — 3714
Permian Basin Royalty Trust
901 Main Street, 17th Floor
Dallas, Texas 75202 — 3714
| Re: | A Report of Proved Reserves Riverhill Energy Corporation Texas Royalty Properties Permian Basin Royalty Trust Interests As of December 31, 2009 Pursuant to the Guidelines of the Securities and Exchange Commission for Reporting Corporate Reserves and Future Net Revenue |
Dear Mr. Hooper:
As requested, we are submitting estimates of proved reserves and forecasts of economics
attributable to the above captioned interests. The Texas Royalty Properties are located in 33
counties across Texas and contain approximately 303,000 gross (51,000 net) producing acres. This
evaluation groups the Texas Royalty Properties into 136 separate royalty entities.
Composite reserve estimates and economic forecasts for the Permian Basin Royalty Trust
Interests are within this volume (Volume IV) in Table I. The present worth values in Table I
should not be construed to represent an estimate of fair market value by Cawley, Gillespie &
Associates, Inc.
The Permian Basin Royalty Trust consists of two major groups of properties, the Waddell Ranch
Properties and the Texas Royalty Properties. The Cawley, Gillespie & Associates, Inc.
Mr. Ron Hooper
February 10, 2010
Page 2
February 10, 2010
Page 2
evaluation of the entire Permian Basin Royalty Trust is presented in four volumes. The
evaluation results of the Texas Royalty Properties interests referred to as the “Permian Basin
Royalty Trust Interests” are presented within this volume (Volume IV). As requested, the portion
of the Texas Royalty Properties attributable to the Total Controlled Interests are presented in
Volume III. The evaluation results of the Waddell Ranch Properties Total Controlled Interests and
Waddell Ranch Properties Permian Basin Royalty Trust Portion are presented in Volumes I and II,
respectively.
The detailed forecasts of reserves and economics are presented in the attached tables. Table
I is a composite forecast of proved developed producing reserves. Table II is a summary of proved
developed producing reserves showing estimates of ultimate recovery, gross and net reserves,
ownership, revenue, expenses, net income and discounted cash flow for the individual properties.
Individual reserve forecasts are presented in the Arabic numbered tables. Page 1 of Appendix II
explains the type of data in these tables. Table II groups royalty entities together primarily by
county. The individual fields are presented in alphabetical order by county name.
Production data was supplied by Schlumberger IPM and Riverhill Energy Corporation in the form
of net royalty oil and gas production by accounting entity. The accounting entities are
consolidated into royalty properties for the purpose of forecasting future net reserves. For this
report, the accounting entities were consolidated into 136 royalty evaluations. Certain entities
have been identified as being within major fields and public information regarding these fields has
been used to determine future rates and remaining reserves. The future net reserves for the
remaining entities have been forecast by analysis of the past net production trends with
extrapolation to an estimated final production rate equal to approximately one-tenth to one-fifth
of the current rate. Reserve evaluation methods and definitions of reserves are explained and
defined on pages 2 and 3, respectively, of Appendix II.
The Trust has instructed Cawley, Gillespie & Associates, Inc. as to the method by which
reserves and net revenue should be allocated to the Permian Basin Royalty Trust Interests in
preparing reserve reports and economic forecasts for the Texas Royalty Properties. A thorough
explanation of the allocation formula is included in Appendix I.
December 31, 2009 oil and gas prices of $55.38/BBL and $6.27/MCF, respectively, were
determined pursuant to the Securities and Exchange Commission regulations effective January 1,
2010, and applied to every entity. These prices were forecast to remain constant throughout the
life of the entity. Ad valorem taxes have been included as operating expenses without escalation.
These estimates were prepared in accordance with applicable published rules and regulations of
the Securities and Exchange Commission using the described prices. All estimates represent our
best judgment based on the data available at the time of preparation. It should be realized that
the reserves actually recovered, the revenue derived therefrom and the total costs incurred could
be more or less than the estimated amounts and may be subject to revision when additional data
becomes available.
Mr. Ron Hooper
February 10, 2010
Page 3
February 10, 2010
Page 3
The reserve estimates were based on interpretations of factual data furnished by you,
Schlumberger IPM or Riverhill Energy Corp. Net production, prices, and ownership were supplied by
you, Schlumberger IPM or Riverhill Energy Corp. and were accepted as furnished. To some extent
information from public records has been used to check or supplement these data. The basic
engineering and geological data were utilized subject to third party reservations and
qualifications. Nothing has come to our attention that would cause us to believe that we are not
justified in relying on such data.
An on-site inspection of these properties has not been performed nor has the mechanical
operation or condition of the wells and their related facilities been examined nor have the wells
been tested by Cawley, Gillespie & Associates, Inc. Possible environmental liability related to
the properties has not been investigated nor considered. The cost of plugging and the salvage
value of equipment at abandonment have not been included.
Submitted,
CAWLEY, GILLESPIE & ASSOCIATES, INC.
Texas Registered Engineering Firm F-693
/s/ Cawley, Gillespie & Associates, Inc.
Texas Registered Engineering Firm F-693
/s/ Cawley, Gillespie & Associates, Inc.
CGA:rp
Engineering Data
Table I — Proved
Composite of Reserve Estimates and Economic Forecasts
Permian Basin Royalty Trust Interests — Texas Royalty Properties
Proved Developed Producing Reserves
Various Counties, Texas
As of December 31, 2009
Composite of Reserve Estimates and Economic Forecasts
Permian Basin Royalty Trust Interests — Texas Royalty Properties
Proved Developed Producing Reserves
Various Counties, Texas
As of December 31, 2009
| Effective Date | 1/01/2010 | |||||||||||||||||||||||||||||||||||||||||||||
| $M | Net Production | Net Revenue | Prices | |||||||||||||||||||||||||||||||||||||||||||
| Year | Oil (Mbbls) | Gas (MMcf) | NGL (Mbbls) | Oil (M$) | Gas (M$) | NGL (M$) | Other (M$) | Oil ($/bbl) | Gas ($/MCF) | NGL ($/bbl) | ||||||||||||||||||||||||||||||||||||
2010 |
257.010 | 402.000 | 0.000 | 14233.290 | 2520.540 | 0.000 | 0.000 | 55.380 | 6.270 | 0.000 | ||||||||||||||||||||||||||||||||||||
2011 |
236.920 | 371.700 | 0.000 | 13120.690 | 2330.600 | 0.000 | 0.000 | 55.380 | 6.270 | 0.000 | ||||||||||||||||||||||||||||||||||||
2012 |
218.330 | 343.920 | 0.000 | 12091.270 | 2156.420 | 0.000 | 0.000 | 55.380 | 6.270 | 0.000 | ||||||||||||||||||||||||||||||||||||
2013 |
201.330 | 318.430 | 0.000 | 11149.870 | 1996.570 | 0.000 | 0.000 | 55.380 | 6.270 | 0.000 | ||||||||||||||||||||||||||||||||||||
2014 |
185.770 | 295.010 | 0.000 | 10288.000 | 1849.730 | 0.000 | 0.000 | 55.380 | 6.270 | 0.000 | ||||||||||||||||||||||||||||||||||||
2015 |
171.500 | 273.480 | 0.000 | 9498.170 | 1714.740 | 0.000 | 0.000 | 55.380 | 6.270 | 0.000 | ||||||||||||||||||||||||||||||||||||
2016 |
158.430 | 253.670 | 0.000 | 8774.290 | 1590.550 | 0.000 | 0.000 | 55.380 | 6.270 | 0.000 | ||||||||||||||||||||||||||||||||||||
2017 |
146.410 | 235.410 | 0.000 | 8108.420 | 1476.030 | 0.000 | 0.000 | 55.380 | 6.270 | 0.000 | ||||||||||||||||||||||||||||||||||||
2018 |
135.380 | 218.600 | 0.000 | 7497.690 | 1370.650 | 0.000 | 0.000 | 55.380 | 6.270 | 0.000 | ||||||||||||||||||||||||||||||||||||
2019 |
125.260 | 203.110 | 0.000 | 6936.940 | 1273.550 | 0.000 | 0.000 | 55.380 | 6.270 | 0.000 | ||||||||||||||||||||||||||||||||||||
2020 |
115.910 | 188.820 | 0.000 | 6419.510 | 1183.920 | 0.000 | 0.000 | 55.380 | 6.270 | 0.000 | ||||||||||||||||||||||||||||||||||||
2021 |
107.310 | 175.590 | 0.000 | 5943.220 | 1100.980 | 0.000 | 0.000 | 55.380 | 6.270 | 0.000 | ||||||||||||||||||||||||||||||||||||
2022 |
99.380 | 163.290 | 0.000 | 5504.100 | 1023.870 | 0.000 | 0.000 | 55.380 | 6.270 | 0.000 | ||||||||||||||||||||||||||||||||||||
2023 |
92.120 | 152.020 | 0.000 | 5101.610 | 953.180 | 0.000 | 0.000 | 55.380 | 6.270 | 0.000 | ||||||||||||||||||||||||||||||||||||
2024 |
85.420 | 141.330 | 0.000 | 4730.690 | 886.180 | 0.000 | 0.000 | 55.380 | 6.270 | 0.000 | ||||||||||||||||||||||||||||||||||||
S Total |
2336.480 | 3736.380 | 0.000 | 129397.760 | 23427.510 | 0.000 | 0.000 | |||||||||||||||||||||||||||||||||||||||
After |
809.570 | 1500.710 | 0.000 | 44834.330 | 9409.500 | 0.000 | 0.000 | |||||||||||||||||||||||||||||||||||||||
Total |
3146.120 | 5237.170 | 0.000 | 174232.100 | 32837.070 | 0.000 | 0.000 | |||||||||||||||||||||||||||||||||||||||
Last Year |
809.570 | 1500.710 | 0.000 | 44834.330 | 9409.500 | 0.000 | ||||||||||||||||||||||||||||||||||||||||
S Total |
2336.480 | 3736.380 | 0.000 | 129397.760 | 23427.510 | 0.000 | ||||||||||||||||||||||||||||||||||||||||
Diff |
0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | ||||||||||||||||||||||||||||||||||||||||
| OK | OK | OK | OK | OK | OK | |||||||||||||||||||||||||||||||||||||||||
Total |
3146.050 | 5237.090 | 0.000 | 174232.090 | 32837.010 | 0.000 | ||||||||||||||||||||||||||||||||||||||||
Diff |
0.070 | 0.080 | 0.000 | 0.010 | 0.060 | 0.000 | Total Revenue | 207069.200 | ||||||||||||||||||||||||||||||||||||||
| ERR | ERR | OK | ERR | ERR | OK | Total Taxes | 9332.740 | |||||||||||||||||||||||||||||||||||||||
| $M | Wells | Taxes | Expenses | Cumulative Net Cash Flow | ||||||||||||||||||||||||||||||||||||||||
| Year | Net | Production (M$) | Ad Valorem (M$) | Operating (M$) | Workover (M$) | COPAS (M$) | Other (M$) | Capital (M$) | Undiscounted (M$) | Discounted @ 10% | ||||||||||||||||||||||||||||||||||
2010 |
0.000 | 751.520 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 16002.320 | 15263.390 | ||||||||||||||||||||||||||||||||||
2011 |
0.000 | 693.250 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 30760.350 | 28060.250 | ||||||||||||||||||||||||||||||||||
2012 |
0.000 | 639.440 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 44368.590 | 38787.410 | ||||||||||||||||||||||||||||||||||
2013 |
0.000 | 590.190 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 56924.830 | 47785.480 | ||||||||||||||||||||||||||||||||||
2014 |
0.000 | 545.080 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 68517.480 | 55337.800 | ||||||||||||||||||||||||||||||||||
2015 |
0.000 | 503.700 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 79226.690 | 61680.320 | ||||||||||||||||||||||||||||||||||
2016 |
0.000 | 465.750 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 89125.780 | 67010.070 | ||||||||||||||||||||||||||||||||||
2017 |
0.000 | 430.820 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 98279.420 | 71490.450 | ||||||||||||||||||||||||||||||||||
2018 |
0.000 | 398.760 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 106749.000 | 75259.130 | ||||||||||||||||||||||||||||||||||
2019 |
0.000 | 369.300 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 114590.200 | 78431.010 | ||||||||||||||||||||||||||||||||||
2020 |
0.000 | 342.110 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 121851.500 | 81101.300 | ||||||||||||||||||||||||||||||||||
2021 |
0.000 | 317.060 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 128578.700 | 83350.260 | ||||||||||||||||||||||||||||||||||
2022 |
0.000 | 293.920 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 134812.700 | 85244.900 | ||||||||||||||||||||||||||||||||||
2023 |
0.000 | 272.710 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 140594.800 | 86842.430 | ||||||||||||||||||||||||||||||||||
2024 |
0.000 | 253.030 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 145958.700 | 88189.680 | ||||||||||||||||||||||||||||||||||
S Total |
6866.640 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 145958.700 | 88189.680 | |||||||||||||||||||||||||||||||||||
After |
2466.040 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 197736.400 | 94948.930 | |||||||||||||||||||||||||||||||||||
Total |
9332.740 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 197736.400 | 94948.930 | |||||||||||||||||||||||||||||||||||
Last Year |
2466.040 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||||||||||||||
S Total |
6866.640 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||||||||||||||
Diff |
0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||||||||||||||
| OK | OK | OK | OK | OK | OK | OK | ||||||||||||||||||||||||||||||||||||||
Total |
9332.680 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||||||||||||||
Diff |
0.060 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||||||||||||||
| ERR | OK | OK | OK | OK | OK | OK | ||||||||||||||||||||||||||||||||||||||
SEC Flat Pricing
| Year | Cushing WTI | Henry Hub | ||||||
2010 |
61.18 | 3.830 | ||||||
Thereafter |
Flat | Flat | ||||||
Cap |
61.18 | 3.830 | ||||||