Gulf Coast Ultra Deep Royalty Trust (OTCMKTS:GULTU) is a statutory trust established in 2011 to hold net profits interests in a portfolio of ultra-deep oil and natural gas wells located in the Gulf Coast region of the United States. The trust’s assets comprise royalty and net profits interests acquired from Ultra Petroleum, and it passively receives a portion of production revenues after operating costs are deducted. Its underlying properties extend across offshore blocks in the Gulf of Mexico as well as onshore leases in coastal Texas and southern Louisiana.
The trust’s primary business activity is the collection and distribution of net proceeds generated by production from deep formations, typically well depths exceeding 15,000 feet. These properties produce a mix of natural gas, condensate and crude oil under long-standing operating agreements with major exploration and production companies. As a non-operating entity, the trust does not engage in drilling or field development; instead, it relies on third-party operators to manage day-to-day field operations, while it retains the right to specified profit interests.
Since its inception, Gulf Coast Ultra Deep Royalty Trust has distributed production proceeds to unit holders on a quarterly basis, reflecting the performance of its asset base. The trust was originally funded through an asset purchase transaction, and its legal and administrative affairs are overseen by a professional trustee. While it does not maintain a traditional corporate management team, key administrative duties are carried out by an independent trustee and an administrative agent responsible for reporting, compliance and coordination with operators.
The trust’s asset portfolio provides exposure to established deep-water and deep-shelf reservoirs in one of North America’s most prolific hydrocarbon provinces. With production focused on long-lived formations in the Gulf Coast, the trust benefits from existing infrastructure and pipeline connections. Distributions to unitholders will continue until the underlying reserves are depleted or the trust’s life terminates in accordance with its governing documents.
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