Whiting USA Trust II Announces Trust Quarterly Distribution

  Whiting USA Trust II Announces Trust Quarterly Distribution

Business Wire

AUSTIN, Texas -- February 7, 2013

Whiting USA Trust II (NYSE: WHZ) announced the first Trust distribution in
2013, which relates to net profits generated during the fourth quarterly
payment period of 2012.

Unitholders of record on February 19, 2013 will receive a distribution
amounting to $11,975,068 or $0.650819 per unit, which is payable on or before
March 1, 2013.

Volumes, average sales prices and net profits for the quarterly payment period
were:

Sales volumes:                                         
Oil (Bbls)                                                   340,079
Natural gas (Mcf)                                           596,479    
Total (BOE)                                                  439,492
Average sales prices:
Oil (per Bbl) ^ (1)                                        $ 79.63
Natural gas (per Mcf)^(2)                                  $ 4.67
                                                           
Gross proceeds:
Oil sales                                                  $ 27,081,047
Natural gas sales                                           2,787,575  
Total gross proceeds                                       $ 29,868,622 
Costs:
Lease operating expenses^(3)                               $ 12,164,744
Production taxes                                             1,540,154
Development costs                                           2,629,576  
Total costs                                                $ 16,334,474 
                                                           
Net profits                                                $ 13,534,148
Percentage allocable to Trust’s Net Profits Interest        90         %
                                                           
Total cash available for the Trust                         $ 12,180,733
Provision for estimated Trust expenses                       (200,000   )
Montana state income taxes withheld                         (5,665     )
Net cash proceeds available for distribution               $ 11,975,068
                                                           
Trust units outstanding                                     18,400,000 
Cash distribution per Trust unit                           $ 0.650819   
                                                           

      The price of crude oil realized by the Trust’s underlying properties
(1)  during the last nine months of 2012 has been lower than was anticipated
      at the time of the Trust’s initial public offering in March 2012.
      
      The average sales price of natural gas for the gas production months
      within the distribution period exceeded the average NYMEX gas prices for
(2)   those same months within the period due to the “liquids rich” content of
      a portion of the natural gas volumes produced by the underlying
      properties.
      
      The Trust’s underlying properties experienced increases in lease
(3)   operating expenses during 2012 related to a higher level of workover
      activity, increased ad valorem taxes and increases in the cost of oil
      field goods and services associated with higher demand in the industry.
      

The net profits interest represents the right to receive 90% of the net
proceeds from Whiting Petroleum Corporation’s interests in certain existing
oil and natural gas properties located primarily in the Rocky Mountains,
Permian Basin, Gulf Coast and Mid-Continent regions of the United States. The
net profits interest will terminate on the later to occur of (1) December 31,
2021, or (2) the time when 11.79 MMBOE have been produced from the underlying
properties and sold (which amount is equivalent to 10.61 MMBOE attributable to
the net profits interest), and the Trust will soon thereafter wind up its
affairs and terminate, after which it will pay no further distributions.

As of December 31, 2012, on a cumulative accrual basis, 1.7 MMBOE (16%) of the
Trust’s total 10.61 MMBOE have been produced and sold. Based on the Trust’s
reserve report for the underlying properties as of December 31, 2012, the
11.79 MMBOE of reserves (10.61 MMBOE to the 90% net profits interest) are
projected to be produced from the underlying properties by December 31, 2021,
which reflects an expected year over year decline rate of approximately 9.0%
between 2013 and 2021, assuming no additional development drilling or other
development expenditures are made on the underlying properties after 2014.
However, cash distributions to unitholders may decline at a faster rate than
the rate of production due to fixed and semi-variable costs attributable to
the underlying properties, or if expected future development is delayed,
reduced or cancelled.

This press release contains forward-looking statements, including all
statements made in this press release other than statements of historical
fact. No assurances can be given that such statements will prove to be
correct. The announced distributable amount is based, in part, on the amount
of cash received or expected to be received by the Trust from Whiting
Petroleum Corporation pursuant to the net profits interest with respect to the
relevant quarterly period. Any differences in actual cash receipts by the
Trust could affect this distributable amount. Other important factors that
could cause actual results to differ materially include expenses of the Trust,
fluctuations in oil and natural gas prices, uncertainty of estimates of oil
and natural gas reserves and production, risks inherent in the operation,
production and development of oil and gas properties, and future production
and development costs. Statements made in this press release are qualified by
the cautionary statements made in this press release. The Trustee does not
intend, and assumes no obligation, to update any of the statements included in
this press release.

Contact:

Whiting USA Trust II
The Bank of New York Mellon Trust Company, N.A., as Trustee
Mary Jo Davis, 713-483-6792
http://WhitingWHZ.investorhq.businesswire.com/
 
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