EXHIBIT 99.1
*LL&E-ROYALTY TRUST
LL&E ROYALTY TRUST ANNOUNCES TRUST INCOME FOR NOVEMBER 2004
LL&E ROYALTY TRUST
JPMORGAN CHASE BANK - TRUSTEE NEWS
RELEASE
FOR IMMEDIATE RELEASE
AUSTIN, TEXAS (October 26, 2004) -- LL&E Royalty Trust (NYSE SYMBOL-LRT)
announced today the Trust income distribution for the month of November 2004.
This distribution represents amounts payable to the Trust with respect to
production for the month of August 2004. Unit holders of record on November 5,
2004 will receive a distribution of $658,623 or approximately $.034680 per Unit
payable on November 15, 2004.
The distribution includes no proceeds from the Jay Field property due to excess
production costs. Excess production costs to be recouped from future proceeds at
the Jay Field property total $269,027.
The Working Interest Owner, under the terms of the Trust Conveyance, is
permitted to escrow funds up to 125% of the estimated future costs such as
dismantlement costs and capital expenditures for the properties in which the
Trust has an interest (Special Cost Escrow). According to the most recent
reserve report, estimated dismantlement costs are $13.3 million for Jay Field
property, $1.9 million for South Pass 89 property and $2.3 million for Offshore
Louisiana property. The Working Interest Owner has informed the Trustee that it
has elected not to escrow any additional funds at this time. However, the
Working Interest Owner intends to continue to monitor each of the properties in
which the Trust has an interest for possible changes in relevant factors, which
may warrant a need for additional escrow. To date, the amounts escrowed for
future dismantlement costs total approximately $4.5 million for Jay Field
property, $2.6 million for South Pass 89 property and $3 million for the
Offshore Louisiana property. The amounts escrowed on the South Pass 89 and
Offshore Louisiana properties exceed 125% of the estimated future dismantlement
costs by approximately $225,000 and $125,000 respectively. The Trust Conveyance
permits, but does not require, the Working Interest Owner to release the excess
escrowed funds, and the Working Interest Owner has informed the Trustee that it
does not intend to release any portion of the escrowed funds at this time.
Gross Proceeds prior to deductions for Production Costs for the month of August
2004 by property is as follows: $2,208,488 for Jay Field property, $107,443 for
South Pass 89 property, and $822,787 for Offshore Louisiana property.
Production Costs for the month of August 2004 by property is as follows:
$2,477,515 for Jay Field property and $116,115 for Offshore Louisiana property.
South Pass 89 property had a negative net operating expense of $23,773, which
was a result of third party credits totaling $65,152. Actual production costs
attributable to the South Pass property for the month of August 2004 were
$41,379.
There was no deduction made for the Special Cost Escrow in August 2004. Fee
Lands Royalties for the month of August 2004 totaled $15,609. Trust related
expenses for the month of July 2004 totaled $58,599.
The Gross Proceeds, Production Costs and Special Cost Escrow numbers stated
above relate to each property as a whole. The Trust's interest in these
properties is 50% for Jay Field, 50% for South Pass 89 and 90% for Offshore
Louisiana.
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, timing and extent of capital expenditures. In addition, the amount of
future distributions will depend on the amounts escrowed by the Working Interest
Owner as described above.
The Trust income distribution announcement for the month of December will be
made on or about November 24, 2004.
CONTACT: LL&E ROYALTY TRUST
JPMORGAN CHASE BANK, AS TRUSTEE
MIKE ULRICH
(800) 852-1422
WWW.BUSINESSWIRE.COM/CNN/LRT.HTM