711303--3/31/2009--MESA_OFFSHORE

related topics

{interest, director, officer}

{loss, insurance, financial}

{gas, price, oil}

{debt, indebtedness, cash}

{operation, international, foreign}

{operation, natural, condition}

{cost, contract, operation}

Natural gas and oil prices fluctuate due to a number of factors, and lower prices will reduce net proceeds available to the Trust and distributions to Trust unitholders. The Trust is party to a Demand Promissory Note that may be called at any time, and the Trust may not have sufficient funds to repay amounts outstanding under this note or to make additional distributions to unitholders of the Trust. Increased production and development costs for the Royalty will result in decreased Trust distributions. Trust reserve estimates depend on many assumptions that may prove to be inaccurate, which could cause both estimates of reserves and estimated future revenues to be too high or too low. Estimates and accruals of costs by PNR may be greater or less than future estimated or actual costs. Operating risks for the working interest owners' interests in the Royalty Properties can adversely affect Trust distributions. Terrorism and continued hostilities in the Middle East could decrease Trust distributions or the market price of the units of beneficial interest of the Trust. The operators of the working interests are subject to extensive governmental regulation. The unitholders and the Trustee have no control over the operation or development of the Royalty Properties and have little influence over operation or development. The Trustee relies upon the working interest owners and managing general partner for information regarding the Royalty Properties. The owner of any Royalty Property may abandon any property, terminating the related Royalty. The Royalty will be sold and the Trust terminated. Trust assets are depleting assets and, if the working interest owners or other operators of the Royalty Properties do not perform additional development projects, the assets may deplete faster than expected. Unitholders have limited voting rights. Unitholders have limited ability to enforce the Trust's rights against the current or future owners of the Royalty Properties. The limited liability of the Trust unitholders is uncertain.

Full 10-K form ▸

711303--3/31/2009--MESA_OFFSHORE_TRUST