\n\u00a0\n<\/p>\n<\/td>\n
\nUnderlying Properties\n<\/p>\n<\/td>\n<\/tr>\n
\n\u00a0\n<\/p>\n<\/td>\n
\nSales Volumes\n<\/p>\n<\/td>\n
\n\u00a0\n<\/p>\n<\/td>\n
\nAverage Price\n<\/p>\n<\/td>\n<\/tr>\n
\n\u00a0\n<\/p>\n<\/td>\n
\n(Boe)\n<\/p>\n<\/td>\n
\n(Boe\/day)\n<\/p>\n<\/td>\n
\n\u00a0\n<\/p>\n<\/td>\n
\n(per Boe)\n<\/p>\n<\/td>\n<\/tr>\n
\nDeveloped Properties (a)\n<\/p>\n<\/td>\n
\n35,122\n<\/p>\n<\/td>\n
\n1,133\n<\/p>\n<\/td>\n
\n\u00a0\n<\/p>\n<\/td>\n
\n$38.50\n<\/p>\n<\/td>\n<\/tr>\n
\nRemaining Properties (b)\n<\/p>\n<\/td>\n
\n16,669\n<\/p>\n<\/td>\n
\n538\n<\/p>\n<\/td>\n
\n\u00a0\n<\/p>\n<\/td>\n
\n$34.31\n<\/p>\n<\/td>\n<\/tr>\n
\n\u00a0\n<\/p>\n<\/td>\n
\n\u00a0\n<\/p>\n<\/td>\n
\n\u00a0\n<\/p>\n<\/td>\n
\n\u00a0\n<\/p>\n<\/td>\n
\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n(a) Crude oil sales represented 99% of sales volumes\n<\/p>\n<\/td>\n
\n\u00a0\n<\/p>\n<\/td>\n
\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n(b) Crude oil sales represented 100% of sales volumes\n<\/p>\n<\/td>\n
\n\u00a0\n<\/p>\n<\/td>\n
Update on Estimated Asset Retirement Obligations<\/b><\/p>\n
\nAs previously disclosed, in November 2019, PCEC informed the Trustee that, as permitted by the agreements governing the conveyances to the Trust, PCEC intended to begin deducting its estimated ARO associated with the West Pico, Orcutt Hill, Orcutt Hill Diatomite, East Coyote and Sawtelle fields reducing the amounts payable to the Trust under its Net Profits Interest. ARO is the accounting recognition related to plugging and abandonment obligations that all operators face. PCEC engaged an accounting firm, Moss Adams LLP (\u201cMoss Adams\u201d), acting as third-party consultants, to assist PCEC in determining its estimated ARO, and on February 27, 2020, PCEC informed the Trustee that based on the analysis performed by its consultants, PCEC\u2019s estimated ARO, as of December 31, 2019, is $45,695,643, which is approximately $10.0 million less than the amount that was originally estimated before PCEC\u2019s consultants completed their analysis, as previously disclosed in the Trust\u2019s Current Report on Form 8\u2011K filed on November 13, 2019. According to PCEC and its third-party consultants, its estimated ARO, which reflects PCEC\u2019s assessment of current market conditions as of December 31, 2019 and changes in California law, was determined to be approximately $33.2 million for the Developed Properties and approximately $12.5 million for the Remaining Properties, or approximately $26.5 million and approximately $3.1 million net to the Trust, respectively, and PCEC has reflected these amounts beginning with the calculation of the net profits generated during January 2020. As previously disclosed, the Trust engaged Martindale Consultants, Inc. (\u201cMartindale\u201d), a provider of analysis and compliance review services to the oil and gas industry, to perform an independent review of the estimated ARO that PCEC provided to the Trustee. The Trustee is currently analyzing Martindale\u2019s evaluation of that estimate. The Trustee also has engaged an accounting expert to advise the Trustee regarding the accruals that PCEC has booked relating to the ARO estimated by PCEC.\n<\/p>\n
\nPCEC has informed the Trustee that in accordance with generally accepted accounting principles, PCEC will evaluate the ARO on a quarterly basis. As a result of that re-evaluation, the actual ARO incurred in the future may be greater or less than the estimated amounts provided by PCEC.\n<\/p>\n
\nBased on PCEC\u2019s estimate of its ARO attributable to the Net Profits Interest, deductions relating to estimated ARO are likely to eliminate the likelihood of any distributions to Trust unitholders for the foreseeable future, as previously disclosed in the Trust\u2019s Current Report on Form 8-K filed on November 13, 2019.\n<\/p>\n
\nAs described in more detail in the Trust\u2019s filings with the SEC, the Trust will terminate if the annual cash proceeds received by the Trust from the Net Profits Interest and Royalty Interest total less than $2.0 million for each of any two consecutive calendar years. PCEC is deducting estimated ARO, thereby reducing the amounts payable to the Trust. Unless significant market changes were to occur, no payments will be made by PCEC to the Trust for the foreseeable future, which would result in the total proceeds received by the Trust to total less than $2.0 million in each of 2020 and 2021.\n<\/p>\n
Production Update<\/b><\/p>\n
\nPCEC has informed the Trustee that the economic effects of the COVID-19 pandemic and the oversupply of crude oil resulting from the dispute over production levels between Russia and the members of the Organization of Petroleum Exporting Countries have had an adverse impact on PCEC\u2019s production. PCEC continuously evaluates, based on price, whether to curtail production or whether to spend additional amounts to return production from down wells. PCEC has informed the Trustee that unless a substantial number of wells return to production, or oil prices improve significantly or both, any monthly payments that PCEC may make to the Trust may not be sufficient to cover the Trust\u2019s administrative expenses, and therefore the likelihood of distributions to the unitholders in the foreseeable future is extremely remote.\n<\/p>\n
Overview of Trust Structure<\/b><\/p>\n
\nPacific Coast Oil Trust is a Delaware statutory trust formed by PCEC to own interests in certain oil and gas properties in the Santa Maria Basin and the Los Angeles Basin in California (the \u201cUnderlying Properties\u201d). The Underlying Properties and the Trust\u2019s net profits, and royalty interests are described in the Trust\u2019s filings with the SEC. As described in the Trust\u2019s filings with the SEC, the amount of any periodic distributions is expected to fluctuate, depending on the proceeds received by the Trust as a result of actual production volumes, oil and gas prices, development expenses, and the amount and timing of the Trust\u2019s administrative expenses, among other factors. For additional information on the Trust, please visit www.pacificcoastoiltrust.com<\/a>.\n<\/p>\n Cautionary Statement Regarding Forward-Looking Information<\/span><\/b><\/p>\n \nThis press release contains statements that are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release, other than statements of historical facts, are “forward-looking statements” for purposes of these provisions. These forward-looking statements include estimates of future asset retirement obligations, expectations regarding the impact of deductions for such obligations on future distributions to unitholders, estimates of future total distributions to unitholders in 2020 and 2021, expectations regarding the impact of COVID-19 on the Trust and the impact of the pandemic on future distributions to unitholders, expectations regarding the impact of lower commodity prices on oil and gas reserve estimates, PCEC\u2019s plans to shut in production or to spend additional amounts to return production from down wells, and the amount and date of any anticipated distribution to unitholders. In any case, PCEC\u2019s deductions of its estimated asset retirement obligations will have a material adverse effect on distributions to the unitholders and on the trading price of the Trust units and may result in the termination of the Trust. Any anticipated distribution is based, in part, on the amount of cash received or expected to be received by the Trust from PCEC with respect to the relevant period. Any differences in actual cash receipts by the Trust could affect this distributable amount. The amount of such cash received or expected to be received by the Trust (and its ability to pay distributions) has been and will be significantly and negatively affected by prevailing low commodity prices, which have declined significantly, could decline further and could remain low for an extended period of time in light of the economic effects of the COVID-19 pandemic and the dispute over production levels between Russia and the members of the Organization of Petroleum Exporting Countries. Other important factors that could cause actual results to differ materially include expenses related to the operation of the Underlying Properties, including lease operating expenses, expenses of the Trust, and reserves for anticipated future expenses. Statements made in this press release are qualified by the cautionary statements made in this press release. Neither PCEC nor the Trustee intends, and neither assumes any obligation, to update any of the statements included in this press release. An investment in units issued by Pacific Coast Oil Trust is subject to the risks described in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 8, 2019, and if applicable, the Trust\u2019s subsequent Quarterly Reports on Form 10-Q. The Trust’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q are available over the Internet at the SEC’s website at http:\/\/www.sec.gov<\/a>.\n<\/p>\n<\/p>\n