Attached files
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8-K - FORM 8-K - TORCH ENERGY ROYALTY TRUST | h85539e8vk.htm |
Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
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Contact: | |
November 4, 2011
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Investor Relations | |
(800) 536-7453 |
Torch Energy Royalty Trust Announces Entry into Letter of Interest
HOUSTON Torch Energy Royalty Trust (Trust) (NYSE: TRU) (www.torchroyalty.com) announced today
that the Trust had entered into a non-binding letter of interest on November 2, 2011 with respect
to the sale of the Trusts net profits interests attributable to underlying working interests in
certain fields that produce from the Cotton Valley and Austin Chalk formations in Texas and the
Chalkley field in Louisiana. The closing of any transaction is subject to due diligence, the
negotiation and execution of mutually acceptable definitive agreements and the satisfaction of any
conditions to closing set forth in those agreements. There can be no assurance that these
discussions will lead to a transaction, or that the terms set forth in any definitive agreements
will be consistent with the current expectations of the parties.
On November 3, 2011, the Trust notified Robinsons Bend Production II, LLC that it was the
successful bidder in the public auction of the sale of the Trusts net profits interests
attributable to underlying working interests in certain fields that produce from the Robinsons
Bend formations in the Black Warrior Basin in Alabama. The transaction is subject to the
negotiation and execution of mutually acceptable definitive agreements.
Each of the transactions described above are anticipated to close before December 31, 2011.
Additional information about the Trust can be found in the Trusts filings with the Securities and
Exchange Commission and on the Trusts website www.torchroyalty.com.
About the Trust
The Trusts underlying properties are depleting assets consisting of net profits interests in
proved developed oil and gas properties located in Texas, Alabama and Louisiana. Approximately 97%
of the estimated reserves are gas.
The Trust received the affirmative vote of the unitholders of more than 66 2/3% of the outstanding
units to terminate the Trust at the meeting of unitholders held on January 29, 2008. Upon
termination of the Trust, among other things, the Trustee of the Trust is required to sell the net
profits interests.
No assurances can be given that the Trustee of the Trust will be able to sell the net profits
interests, or the price that will be distributed to unitholders following such a sale. Such
distributions could be below the market value of the units.
The Trust can give no assurances of the effect of the results of the affirmative vote to terminate
the Trust by the unitholders on the continued listing of the units on the New York Stock Exchange
(NYSE) or any other national quotation system.
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 with respect to the Trusts business that is not
historical information. As a general matter, forward-looking statements are those focused upon
future or anticipated events or trends and expectations and beliefs relating to matters that are
not historical in nature. The words believe, expect, plan, intend, estimate, or
anticipate and similar expressions, as well as future or conditional verbs such as will,
should, would, and could, often identify forward-looking statements. The Trust believes
there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain,
and the Trust may not realize its expectations and its beliefs may not prove correct, including, without limitation, whether the court will approve the
settlement discussed in this press release. These and other risks, uncertainties and assumptions
are detailed in the Risk Factors section and elsewhere in the documents filed by the Trust with
the Securities and Exchange Commission. Accordingly, there are or will be important factors that
could cause actual outcomes or results to differ materially from those indicated in these
statements. The Trust undertakes no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events, or otherwise.