Exhibit 99.1
Mesa-Offshore-Trust
Mesa Offshore Trust Announces No Trust Income for August 2007
MESA OFFSHORE TRUST
JPMorgan Chase Bank, N.A., Trustee
For Immediate Release
Austin, Texas August 27, 2007 - Mesa Offshore Trust (OTC symbol-MOSH) announced that there will be no Trust income distribution for the month of August 2007 for Unitholders of record on August 31, 2007.
The Trust did not receive any Royalty income from the Working Interest Owner for the month of August 2007. As of June 30, 2007 the Working Interest Owner estimates that the abandonment accrual for amounts expended but not recouped and for projected future abandonment expenses for the properties in which the Trust has an interest is approximately $1.4 million net to the Trust. These costs will be deducted from any future gross proceeds on the Royalty properties, which deductions will reduce future Royalty income. In addition, no Royalty income will be distributed to Unitholders until the Trustee recoups Trust expenses being paid from the reserve that the Trustee has established for anticipated future expenses. As of June 30, 2007, approximately $2.2 million will be withheld by the Trustee from future Royalty income before Trust distributions to the Unitholders will resume. Trust expenditures for the month of August 2007 will be approximately $242,000. Trust expenditures in excess of royalty income received have depleted the Trust’s reserve for Trust expenses to approximately $4,000. As of July 31, 2007, the Trust had unpaid expenses of approximately $1.1 million. Based on current general and administrative expenditures being incurred in connection with the litigation, in the absence of Royalty income the Trustee will be required to borrow money in accordance with the Trust Indenture to fund future Trust expenses. The Trustee is currently reviewing alternatives for loans to the Trust permitted under the Trust Indenture, including loans on a secured basis. In the event any loans are made to the Trust, the Trust Indenture will prohibit the Trustee from making any distributions to unitholders until those loans are repaid in full.
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.
Contact: | Mesa Offshore Trust |
| JPMorgan Chase Bank, N.A., as Trustee |
| Mike Ulrich |
| 1(800) 852-1422 |
www.businesswire.com/cnn/mosh.htm
919 Congress Avenue, Austin, TX 78701
