0000072633-16-000044.txt : 20160801 0000072633-16-000044.hdr.sgml : 20160801 20160801162255 ACCESSION NUMBER: 0000072633-16-000044 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20160729 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20160801 DATE AS OF CHANGE: 20160801 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTH EUROPEAN OIL ROYALTY TRUST CENTRAL INDEX KEY: 0000072633 STANDARD INDUSTRIAL CLASSIFICATION: OIL ROYALTY TRADERS [6792] IRS NUMBER: 222084119 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08245 FILM NUMBER: 161797546 BUSINESS ADDRESS: STREET 1: P O BOX 456 STREET 2: 43 WEST FRONT STREET SUITE 19-A CITY: RED BANK STATE: NJ ZIP: 07701 BUSINESS PHONE: 7327414008 MAIL ADDRESS: STREET 1: P O BOX 456 STREET 2: 43 WEST FRONT STREET SUITE 19-A CITY: RED BANK STATE: NJ ZIP: 07701 8-K 1 ek080116.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 29, 2016 --------------- NORTH EUROPEAN OIL ROYALTY TRUST ------------------------------------------------------ (Exact name of Registrant as specified in its charter) Commission File No. 1-8245 Delaware 22-2084119 ----------------------- ----------------------- (State of organization) (IRS Employer I.D. No.) Suite 19A, 43 West Front Street, Red Bank, N.J. 07701 ---------------------------------------------------------------- (Address of principal executive offices) 732-741-4008 --------------------------------------------------- (Registrant's telephone number including area code) Not Applicable ------------------------------------------------------------ Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) -2- Item 2.02. Results of Operations and Financial Condition. ---------------------------------------------- On July 29, 2016 North European Oil Royalty Trust issued a press release via PR Newswire announcing the Trust's distribution for the third quarter of fiscal 2016. Furnished herewith is a copy of the press release, which is incorporated by reference herein. Item 9.01. Financial Statements and Exhibits. ---------------------------------- (c) Exhibits The following exhibit is furnished herewith: Exhibit 99. A press release dated July 29, 2016 and disseminated through PR Newswire announcing the distribution for North European Oil Royalty Trust for the third quarter of fiscal 2016. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. NORTH EUROPEAN OIL ROYALTY TRUST -------------------------------- (Registrant) By: /s/ John R. Van Kirk ------------------------ John R. Van Kirk Managing Director Dated: August 1, 2016 EX-99 2 x99-0801.txt -3- Exhibit 99 PR NEWSWIRE NORTH EUROPEAN OIL ROYALTY TRUST ANNOUNCES THE DISTRIBUTION FOR THE THIRD QUARTER OF FISCAL 2016 Red Bank, N.J. July 29, 2016 The Trustees of North European Oil Royalty Trust (NYSE-NRT) announced today a quarterly distribution of $0.15 per unit for the third quarter of fiscal 2016, payable on August 31, 2016 to holders of record on August 19, 2016. Natural gas sold during the second calendar quarter of 2016 is the primary source of royalty income on which the August 2016 distribution is based. John R. Van Kirk, Managing Director, reported that this year's quarterly distribution of $0.15 per unit is 58.33%, or $0.21 per unit, lower than the distribution of $0.36 per unit for the third quarter of fiscal 2015. The Trust receives nearly all of its royalties under two royalty agreements. The Mobil Agreement, which is the higher royalty rate agreement, covers gas sales from the western half of the Oldenburg concession. The OEG Agreement, which is the lower royalty rate agreement, covers gas sales from the entire Oldenburg concession. The factors determining the amount of gas royalties payable under the two agreements from the preceding calendar quarter are shown in the table below comparing the second calendar quarters of 2016 and 2015. Further details will be available in the Trust's quarterly report on Form 10-Q which will be available through the SEC or on the Trust's website, www.neort.com, on or about August 31, 2016. Factors Determining Gas Royalties Payable ----------------------------------------- 2nd Calendar Qtr. 2nd Calendar Qtr. Percentage Ended 6/30/2016 Ended 6/30/2015 Change ---------------- ---------------- ---------- Mobil Agreement --------------- Gas Sales (Bcf)(1) 4.916 7.382 - 33.41% Gas Prices (Ecents/Kwh)(2) 1.5363 2.0017 - 23.25% Average Exchange Rate (3) 1.1185 1.1113 + 0.65% Gas Royalties $969,471 $1,884,107 - 48.54% OEG Agreement ------------- Gas Sales (Bcf) 17.520 22.591 - 22.45% Gas Prices (Ecents/Kwh) 1.5667 2.0401 - 23.20% Average Exchange Rate 1.1159 1.1159 - 0.00% Gas Royalties $408,480 $796,230 - 48.70% (1) Billion cubic feet (2) Euro cents per Kilowatt hour (3) Based on average exchange rates of cumulative royalty transfers The Trust receives royalty payments for each fiscal quarter prospectively based on actual royalties payable for the preceding calendar quarter. In the final month of the Trust's fiscal quarter, the operating companies determine any underpayment or overpayment based upon the actual amount of royalties that should have been paid to the Trust. Any underpayment is added to the amount of royalties paid during the current fiscal quarter. Any overpayment is deducted from the amount of royalties to be paid in the first month of the -4- Trust's next fiscal quarter. The operating companies may make further adjustments during the quarter based on the recalculation of royalties payable for prior periods, and the Trust has no means of predicting such adjustments. The table below shows an estimate of the amount of royalties anticipated to be received in the fourth quarter of fiscal 2016 based on the actual amount of royalties that were payable to the Trust for the second calendar quarter of 2016. Amounts in dollars are based on the current exchange rate of 1.116858. Actual royalty income in dollars is valued based on exchange rates on the day funds are transferred. The August estimate below includes a negative adjustment from the prior quarter of Euros 440,259 and the delayed payment of Mobil sulfur royalty of Euros 35,515 for the second quarter of 2016. In addition, the Trust's German accountants have completed their examination of the royalty payments by the operating companies for 2013-2014 and have reported a combination of positive and negative adjustments potentially totaling a negative Euros 130,000. The Trust is disputing the negative portion of this total amounting to Euros 158,000. We cannot estimate when the dispute will be resolved, but there is the possibility of a negative adjustment in the upcoming quarter. ------------------------------------------------------------------------------ Estimated Combined Combined Combined Dollar Royalties Royalties Royalties Royalties in Anticipated in In Euros In Dollars Cents per Unit ------------------------------------------------------------------------------ August Euros 34,308 $ 38,317 $0.0042 September Euros 439,051 $ 490,358 $0.0534 October Euros 439,051 $ 490,358 $0.0534 ------------------------------------------------------------------------------ The cumulative 12-month distribution, which includes the August 2016 distribution and the three prior quarterly distributions, is $0.78 per unit. This 12-month cumulative distribution is 45.45% or $0.65 per unit lower than the prior 12-month distribution of $1.43 per unit. The Trust makes quarterly distributions to unit owners during the months of February, May, August and November. Contact John R. Van Kirk, Managing Director, tel.: (732) 741-4008, email: jvankirk@neort.com. The Trust's press releases and other pertinent information are available at the Trust's website: www.neort.com.