PERMIAN BASIN ROYALTY TRUST

PERMIAN BASIN ROYALTY TRUST

Previous company name

Name change date

Company Overview
Permian Basin Royalty Trust is an express trust created in 1980 under the laws of the state of Texas by Permian Basin Royalty trust Indenture between Southland Royalty Company and The First National Bank of Fort Worth. The Trust is a tax-deferred pipeline for Texas oil money. Headquartered in Dallas, Texas, USA, the principal assets of the Group are comprised of net overriding royalty interests held by the Trust are carved out of high quality producing oil and gas properties located primarily in West Texas.
The Trust derives royalties from the sale of certain oil and gas assets produced by ConocoPhillips in mature oil fields in Texas, including property that’s part of the Waddell Ranch. The trust distributes royalties to shareholders monthly based on the amount of oil and gas produced and sold. In 2006, Permian Basin Royalty Trust owned royalty interests on proved reserves of 6.4 million barrels of oil and 23.2 billion cu. ft. of natural gas. It also had interests in 1,313 wells and 76,922 gross acres of land. Permian Basin Royalty Trust is a publicly quoted company with shares listed on New York Stock Exchange.
Business Summary
Permian Basin Royalty Trust (the Trust) is an express trust. The net overriding royalties conveyed to the Trust includes a 75% net overriding royalty carved out of Southland Royalty’s fee mineral interests in the Waddell Ranch in Crane County, Texas (the Waddell Ranch properties), and a 95% net overriding royalty carved out of Southland Royalty’s producing royalty interests in Texas (the Texas Royalty properties).
Description and history
Permian Basin Royalty Trust (the Trust) is an express trust. The net overriding royalties conveyed to the Trust includes a 75% net overriding royalty carved out of Southland Royalty’s fee mineral interests in the Waddell Ranch in Crane County, Texas (the Waddell Ranch properties), and a 95% net overriding royalty carved out of Southland Royalty’s producing royalty interests in Texas (the Texas Royalty properties).

Waddell Ranch Properties

The mineral interests in the Waddell Ranch, from which such net royalty interests are carved, vary from 37.5% (Trust net interest) to 50% (Trust net interest) in 78,715 gross (34,205 net) producing acres. At December 31, 2009, the Waddell Ranch properties contained 800 gross (372 net) productive oil wells, 213 gross (87 net) productive gas wells and 294 gross (131 net) injection wells. Burlington Oil & Gas Company LP (BROG) is the operator of the Waddell Ranch Properties. As of December 31, 2009, six fields on the Waddell Ranch properties accounts for more than 90% of the total production. In the six fields, there are 12 producing zones ranging in depth from 2,800 to 10,600 feet.

The Dune and Waddell oil fields are productive from both the Grayburg and San Andres formations. The Sand Hills (Tubb) oil fields produce from the Tubb formation at depths averaging 4,300 feet, and the University Waddell (Devonian) oil field is productive from the Devonian formation between 8,400 and 9,200 feet. During 2009, there were 11 gross (five net) wells drilled and completed on the Waddell Ranch properties.

Texas Royalty Properties

The Texas Royalty properties consist of royalty interests in mature producing oil fields, such as Yates, Wasson, Sand Hills, East Texas, Kelly-Snyder, Panhandle Regular, N. Cowden, Todd, Keystone, Kermit, McElroy, Howard-Glasscock, Seminole and others located in 33 counties across Texas. The Texas Royalty properties consist of approximately 125 separate royalty interests containing approximately 303,000 gross (approximately 51,000 net) producing acres.

Business Line
A tax-deferred pipeline for Texas oil money
Subsidiary

Advisor
DELOITTE & TOUCHE LLP
IPO date
10/24/1980
US SIC Code
1311
Company Address
830650
Bank of America, N.A., Trust Dept.
City province or state postal code
75283, DALLAS, TX
Phone: +1 214 209 2400
Fax: +1 214 209 2431
Country address: UNITED STATES OF AMERICA
Website url: www.pbt-permianbasintrust.com