EXHIBIT 99.1
*LL&E-ROYALTY TRUST
LL&E ROYALTY TRUST ANNOUNCES TRUST DISTRIBUTION FOR OCTOBER 2005
LL&E ROYALTY TRUST
JPMORGAN CHASE BANK, N.A. - TRUSTEE
NEWS
RELEASE
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FOR IMMEDIATE RELEASE
AUSTIN, TEXAS (September 23, 2005) -- LL&E Royalty Trust (NYSE SYMBOL-LRT)
announced today the Trust income distribution for the month of October 2005.
This distribution represents amounts payable to the Trust with respect to
production for the month of July 2005. Unit holders of record on October 5, 2005
will receive a distribution of $467,458 or approximately $.024614 per Unit
payable on October 14, 2005.
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 totaled $1,840,103.
The Working Interest Owner ("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 $16.6 million for Jay Field
property, $1.0 million for South Pass 89 property and $1.4 million for Offshore
Louisiana property. The Owner has informed the Trustee that it has elected not
to escrow any additional funds at this time. However, the 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 $3.0 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 $1.35 million
and $1.25 million respectively. The Trust Conveyance permits, but does not
require, the Owner to release the excess escrowed funds, and the 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 July
2005 by property are as follows: $950,013 for Jay Field property, $138,171 for
South Pass 89 property, and $680,008 for Offshore Louisiana property.
Production Costs for the month of July 2005 by property are as follows:
$2,790,116 for Jay Field property, $58,125 for South Pass 89 property and
$131,578 for Offshore Louisiana property.
There was no deduction made for the Special Cost Escrow in July 2005. Fee Lands
Royalties for the month of July 2005 totaled $26,021. Trust related expenses for
the month of July 2005 totaled $92,173.
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.
This press release contains statements that are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. All statements
contained in this press release, other than statements of historical facts, are
"forward-looking statements" for purposes of these provisions. These
forward-looking statements include the amount and date of any anticipated
distribution to unit holders. An investment in Units issued by LL&E Royalty
Trust is subject to the risks described in the Trust's Annual Report on Form
10-K for the year ended December 31, 2004, its Quarterly Report on Form 10-Q for
the quarter ended June 30, 2005, and all of its other filings with the
Securities and Exchange Commission. The Trust's annual, quarterly and other
filed reports are available over the Internet at the SEC's web site at
http://www.sec.gov.
The Trust income distribution announcement for the month of November will be
made on or about October 28, 2005.
CONTACT: LL&E ROYALTY TRUST
JPMORGAN CHASE BANK, N.A., AS TRUSTEE
MIKE ULRICH
(800) 852-1422
WWW.BUSINESSWIRE.COM/CNN/LRT.HTM