North European Oil Royalty Trust has limited information
regarding gas reserves within the Oldenburg Concession
which is the primary source of royalties for the Trust.
According to the contractual agreement with the operating
company, the operating company, BEB ( a joint venture
between ExxonMobil Corp. and the Royal Dutch/Shell Group
of Companies) does not have to provide detailed geological
information to holders of overriding royalty rights.
Despite numerous past requests for additional information,
the operating companies have refused any additional
data. The reserves on which the Trust reports are categorized
solely as proved producing reserves. Proved
producing reserves can only be calculated on those wells
for which there is current production. The petroleum
consultants for the Trust have expressed confidence
in their ability to provide reasonable estimates as
to the level of proved producing reserves based on the
production data which is provided to the Trust by the
operating companies for specific wells and fields. While
this methodology cannot be entirely accurate given the
lack of confirming data, it does provide some logical
assessment of the proved producing reserves for the
Trust. This methodology does not address the reserve
categories of proved non-producing, probable
or possible. The complete text of the reserve
report and the limitations under which it is prepared
are included in the Appendix for the Trusts official
10-K Filing with the S.E.C. These reports can be accessed
through the Investors section of this Website.
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