Permian Basin Royalty Trust (Trust) operates as an express trust.
The net overriding royalties conveyed to the Trust (the Royalties) include 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 major producing royalty interests in Texas (the Texas Royalty properties). The interests out of which the Trust’s net overriding r...
Permian Basin Royalty Trust (Trust) operates as an express trust.
The net overriding royalties conveyed to the Trust (the Royalties) include 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 major producing royalty interests in Texas (the Texas Royalty properties). The interests out of which the Trust’s net overriding royalty interests were carved were in all cases less than 100%. The Trust’s net overriding royalty interests represent burdens against the properties in favor of the Trust without regard to ownership of the properties from which the overriding royalty interests were carved. The net overriding royalty for the Texas Royalty properties is subject to the provisions of the lease agreements under which such royalties were created.
Waddell Ranch Properties
The net profits/overriding royalty interest in the Waddell Ranch properties is the largest asset of the Trust. 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). A majority of the proved reserves are attributable to six fields: Dune, Sand Hills (Judkins), Sand Hills (McKnight), Sand Hills (Tubb), University-Waddell (Devonian) and Waddell.
All field, technical and accounting operations have been contracted by agreements between the working interest owners and Schlumberger Integrated Project Management (IPM) and Riverhill Capital Corporation (Riverhill Capital), but remain under the direction of Blackbeard, as of December 31, 2023.
Six major fields on the Waddell Ranch properties account for more than 80% of the total production. In the six fields, there are 12 producing zones ranging in depth from 2,800 to 10,600 feet. Most prolific of these zones are the Grayburg and San Andres, which produce from depths between 2,800 and 3,400 feet. Also productive from the San Andres are the Sand Hills (Judkins) gas field and the Sand Hills (McKnight) oil field, the Dune (Grayburg/San Andres) oil field, and the Waddell (Grayburg/San Andres) oil field.
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.
The Waddell Ranch properties are mature producing properties, and all of the major oil fields are being waterflooded for the purpose of facilitating enhanced recovery.
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. Approximately 39% of the future net revenues discounted at 10% attributable to Texas Royalty properties are located in the Wasson and Yates fields.
History
Permian Basin Royalty Trust was founded in 1980 under the laws of the state of Texas.