Exhibit 99.1
MV Oil Trust
MV Oil Trust Announces Trust Fourth Quarter Distribution
MV OIL TRUST
The Bank of New York Mellon Trust Company, N.A., Trustee
NEWS RELEASE
FOR IMMEDIATE RELEASE
Austin, Texas, January 7, 2011 — MV Oil Trust (NYSE Symbol — MVO) announced the Trust distribution of Net Profits for the fourth quarterly payment period ended December 31, 2010.
Unitholders of record on January 18, 2011 will receive a distribution amounting to $7,762,500 or $0.675 per unit payable January 25, 2011.
Volumes, price and Net Profits for the payment period were:
Volume (BOE) | | 235,300 | |
Proceeds (BOE) | | $ | 67.91 | |
Gross Proceeds | | $ | 15,979,596 | |
Costs | | $ | 6,990,693 | |
Net Profits | | $ | 8,988,903 | |
Percentage applicable to Trust’s 80% | | | |
Net Profits Interest | | $ | 7,191,122 | |
| | | |
Decrease in MV Partners’ Reserve for Future | | $ | 750,000 | |
Capital Expenditures(1) | | | |
Total cash proceeds available for the Trust | | $ | 7,941,122 | |
Provision for estimated Trust expenses | | $ | (178,622 | ) |
Net cash proceeds available for distribution | | $ | 7,762,500 | |
(1) Although MV Partners has released $750,000 reserved for future capital expenditures, it can reserve at any time up to an aggregate of $1.0 million.
As previously reported, the Trust’s second quarterly distribution included amounts from collections from SemCrude, L.P. and Eaglwing, L.P. for sales of oil during the 20-day period immediately prior to their bankruptcy in July 2008. As also previously reported, Vess Oil Corporation and Murfin Drilling Company, Inc., who are the operators of the underlying properties of MV Partners, LLC, filed proofs of claims in the bankruptcy case on a lease by lease basis on their own behalf and on behalf of various working interest owners (inclusive of MV Partners’ interests), overriding royalty owners and royalty owners. Vess Oil and Murfin Drilling received funds in late September 2010 for the collection of the sale of oil volumes to SemCrude and Eaglwing for the period prior to such 20-day period. Such funds represent the payout on such c laims, less certain charges allowed by the bankruptcy court. The gross proceeds amount of $15,979,596 includes $1,274,477 received by MV Partners, LLC in the fourth quarter of 2010 as its allocated portion of the funds received by Vess Oil and Murfin Drilling in late September 2010. Consequently, Proceeds (BOE) also reflects such allocated portion of such funds while Volumes (BOE) represent actual volumes sold during the reporting period.
This press release contains forward-looking statements. Although MV Partners, LLC has advised the Trust that MV Partners, LLC believes that the expectations contained in this press release are reasonable, no assurances can be given that such expectations will prove to be correct. The announced distributable amount is based on the amount of cash received or expected to be received by the Trustee from the underlying properties on or prior to the record date. Any differences in actual cash receipts by the Trust could affect this distributable amount. Other important factors that could cause these statements to differ materially include the actual results of drilling operations, risks inherent in drilling and production of oil and gas properties, the ability of commodity purchasers to make payment, and other risk factors
