Pacific Coast Oil Trust Stock

Pacific Coast Oil Trust acquires and holds net profits and royalty interests in certain oil and natural gas properties located in California.

The company and Pacific Coast Energy Company LP (PCEC) entered into a Conveyance of Net Profits Interests and Overriding Royalty Interest (the Conveyance), pursuant to which PCEC conveyed to the Trust the net profits interests (Net Profits Interests) and a royalty interest (Royalty Interest), which are collectively referred to herein as the ‘Conveyed Interests’, in certain oil and natural gas properties located onshore in California (the Underlying Properties). The Conveyed Interests represent undivided interests in the Underlying Properties.

The Underlying Properties consist of the proved developed reserves as of December 31, 2011 on the Underlying Properties, which are referred to as the ‘Developed Properties’, and all other development potential on the Underlying Properties, which are referred to as the ‘Remaining Properties’. Production from the Developed Properties attributable to the company is produced from wells that, because they have already been drilled, require limited additional capital expenditures. Production from the Remaining Properties that is attributable to the company requires capital expenditures for the drilling of wells and installation of infrastructure. PCEC supplies the required capital on behalf of the company during the drilling and development period; however, because the costs initially incurred exceed gross proceeds, the Remaining Properties have negative net profits.

The Underlying Properties consist of producing and non-producing interests in oil units, wells and lands located onshore in California in the Santa Maria Basin, which contains PCEC’s Orcutt properties, and the Los Angeles Basin, which contains PCEC’s West Pico, East Coyote and Sawtelle properties.

As of December 31, 2018, the Underlying Properties had proved reserves of 19.0 million barrels of oil equivalent. As of December 31, 2018, approximately 83% of the volumes of the proved reserves associated with the Underlying Properties and 90% of the volumes of the proved reserves associated with the Trust were attributed to proved developed reserves. All of the Underlying Properties are held by production or owned in fee. For the year ended December 31, 2018, the average net sales (after royalties and other interests) were approximately 2,194 Boe (stock tank barrel) per day (Boe/d) from the Developed Properties and 479 Boe/d from the Remaining Properties. In 2018, approximately 99% of production from the Developed Properties consisted of oil and 100% of the production from the Remaining Properties consisted of oil.

History

Pacific Coast Oil Trust was founded in 2012.