EX-99.1
2
a10-1752_1ex99d1.htm
EX-99.1
Exhibit 99.1
Mesa Offshore
Trust Announces Abandonment of Brazos A-39 and Termination of Trust
MESA OFFSHORE
TRUST
JPMorgan Chase
Bank, N.A., Trustee
NEWS
RELEASE
For Immediate Release
Austin, Texas
January 12
, 2010
- Mesa Offshore Trust (OTC
BB symbol: MOSH.OB) announced that by letter dated January 11, 2010,
Pioneer Natural Resources informed the Trust that Pioneer proposed to its
co-working interest owner in the Brazos A-39 No. 5 well, Woodside Energy
USA, Inc., that the well, platform and related facilities should be
abandoned pursuant to an operating agreement governing the property. Woodside agreed to this by election dated January 8,
2010. As a result, the Brazos A-39 lease
will lapse and revert to the U.S. government, and all of the interests in the
lease held by each of Pioneer, Woodside and the Mesa Offshore Royalty
Partnership (the "Partnership") will be extinguished.
The Brazos A-39 lot, including
Pioneer's working interest, previously drew no bids in an auction provided for
under a settlement agreement executed May 18, 2009 with the Trust relating
to the lawsuit by MOSH Holding, L.P. and other plaintiffs. Production from the Brazos A-39 No. 5
well was relied upon to maintain the Brazos A-39 lease, but the well was shut
in by a pipeline purchaser on September 2, 2009 because the production
does not meet pipeline specifications.
Based on these events, Pioneer
has informed the Trust that it is moving forward with the final accounting
relating to the termination, liquidation and wind-up of the Partnership in
accordance with the settlement agreement and the Partnership's First Amended
and Restated Articles of General Partnership.
Pioneer expects to complete that process by the end of the first quarter
2010.
Based on the sale or abandonment
by the Partnership of all of the overriding royalty and other interests
conveyed to the Partnership pursuant to the Conveyance, the Trust will
terminate at such effective time in accordance with Section 9.02 of the
Trust's Royalty Trust Indenture (the "Trust Indenture") and with the settlement
agreement. The Trustee will continue to
act as Trustee and exercise its powers for the purpose of liquidating and
winding up the affairs of the Trust at its termination until its duties have
been fully performed and the Trust estate is finally distributed. In accordance with the Trust Indenture, the
Trustee will as promptly as possible distribute the proceeds of any such sales
and any other cash in the Trust estate (including settlement proceeds), after
paying, satisfying and discharging all of the liabilities of the Trust, or,
when necessary, setting up reserves in such amounts as the Trustee in its
discretion deems appropriate for contingent liabilities.
Contact:
Mesa Offshore Trust
JPMorgan Chase Bank, N.A., as
Trustee
Mike Ulrich
1(800) 852-1422
www.businesswire.com/cnn/mosh.htm
919 Congress Avenue, Austin, TX
78701

EX - 99 . 1 2 a10 - 1752 _ 1ex99d1 . htm EX - 99 . 1 Exhibit 99 . 1 Mesa Offshore Trust Announces Abandonment of Brazos A - 39 and Termination of Trust MESA OFFSHORE TRUST JPMorgan Chase Bank , N . A . , Trustee NEWS RELEASE For Immediate Release Austin , Texas January 12 , 2010 - Mesa Offshore Trust ( OTC BB symbol : MOSH . OB ) announced that by letter dated January 11 , 2010 , Pioneer Natural Resources informed the Trust that Pioneer proposed to its co - working interest owner in the Brazos A - 39 No . 5 well , Woodside Energy USA , Inc . , that the well , platform and related facilities should be abandoned pursuant to an operating agreement governing the property . Woodside agreed to this by election dated January 8 , 2010 . As a result , the Brazos A - 39 lease will lapse and revert to the U . S . government , and all of the interests in the lease held by each of Pioneer , Woodside and the Mesa Offshore Royalty Partnership ( the " Partnership " ) will be extinguished . The Brazos A - 39 lot , including Pioneer ' s working interest , previously drew no bids in an auction provided for under a settlement agreement executed May 18 , 2009 with the Trust relating to the lawsuit by MOSH Holding , L . P . and other plaintiffs . Production from the Brazos A - 39 No . 5 well was relied upon to maintain the Brazos A - 39 lease , but the well was shut in by a pipeline purchaser on September 2 , 2009 because the production does not meet pipeline specifications . Based on these events , Pioneer has informed the Trust that it is moving forward with the final accounting relating to the termination , liquidation and wind - up of the Partnership in accordance with the settlement agreement and the Partnership ' s First Amended and Restated Articles of General Partnership . Pioneer expects to complete that process by the end of the first quarter 2010 . Based on the sale or abandonment by the Partnership of all of the overriding royalty and other interests conveyed to the Partnership pursuant to the Conveyance , the Trust will terminate at such effective time in accordance with Section 9 . 02 of the Trust 's Royalty Trust Indenture ( the " Trust Indenture " ) and with the settlement agreement . The Trustee will continue to act as Trustee and exercise its powers for the purpose of liquidating and winding up the affairs of the Trust at its termination until its duties have been fully performed and the Trust estate is finally distributed . In accordance with the Trust Indenture , the Trustee will as promptly as possible distribute the proceeds of any such sales and any other cash in the Trust estate ( including settlement proceeds ) , after paying , satisfying and discharging all of the liabilities of the Trust , or , when necessary , setting up reserves in such amounts as the Trustee in its discretion deems appropriate for contingent liabilities . Contact : Mesa Offshore Trust JPMorgan Chase Bank , N . A . , as Trustee Mike Ulrich 1 ( 800 ) 852 - 1422 www.businesswire.com/cnn/mosh.htm 919 Congress Avenue , Austin , TX 78701