Marine Petroleum Trust, through its subsidiary, Marine Petroleum Corporation (MPC), operates as a royalty trust that engages in the administration and collection of royalties.
MPC holds title to interests in properties that are situated offshore of Louisiana. Ninety-eight percent of all oil, natural gas, and other mineral royalties collected by MPC, less the receiving and collection costs, are retained by and delivered to the Trust. MPC retains the remaining two percent of the overriding royalt...
Marine Petroleum Trust, through its subsidiary, Marine Petroleum Corporation (MPC), operates as a royalty trust that engages in the administration and collection of royalties.
MPC holds title to interests in properties that are situated offshore of Louisiana. Ninety-eight percent of all oil, natural gas, and other mineral royalties collected by MPC, less the receiving and collection costs, are retained by and delivered to the Trust. MPC retains the remaining two percent of the overriding royalties along with other items of income and expense until the board of directors declares a dividend out of the corpus.
The company's rights are generally referred to as overriding royalty interests in the oil and natural gas industry, and are sometimes referred to as overriding royalty interests. An overriding royalty interest is created by an assignment by the owner of a working interest in an oil or natural gas lease. All production and marketing functions are conducted by the working interest owners of the leases.
The company holds an overriding royalty interest equal to three-fourths of 1% of the value at the well of any oil, natural gas, or other minerals produced and sold from the leases. Its overriding royalty interest applies only to existing leases and does not apply to new leases that the Interest Owners may acquire.
The company also previously owned a 32.6% interest in Tidelands Royalty Trust 'B' (Tidelands), a separate Texas trust. Tidelands has been wound up and declared January 31, 2022 as the record date for the final distribution, which was paid in February 2022.
As of June 30, 2023, the leases subject to the company's interests covered an aggregate of 199,868 gross acres. These leases will remain in force until the leases terminate or expire pursuant to their respective terms. Leases may be voluntarily released by the working interest owner after oil and natural gas reserves are produced. Leases may also be abandoned by the working interest owner due to the failure to discover and produce sufficient reserves to make development economically worthwhile. In addition, the U.S. federal government may terminate a lease if the working interest owner fails to develop a lease once it is acquired.
All aspects of the company's operations are conducted by third parties. These operations include the production and sale of oil and natural gas and the calculation of royalty payments to the company, which are conducted by oil and natural gas companies that lease tracts subject to Marine's interests. American Stock Transfer and Trust Company, LLC is the transfer agent for Marine and is responsible for reviewing, processing, and paying distributions.
As of June 30, 2023, the company had an overriding royalty interest in 55 different oil and natural gas leases covering an aggregate of 199,868 gross acres. These leases are located in the Central and Western areas of the Gulf of Mexico off the coasts of Louisiana and Texas.
As of June 30, 2023, the company received approximately 95% of its royalty income from the sale of oil and 5% of its royalty income from the sale of natural gas.
For the year ended June 30, 2023, the company received 99% and 1% of royalties from Arena Energy, LP and Chevron USA, Inc. respectively.
History
Marine Petroleum Trust was founded in 1956 under the laws of the state of Texas.