MV Oil Trust (NYSE: MVO ) , which exploits oil and natural gas properties in the Mid-Continent region in Kansas and Colorado, will expire either on June 30, 2026, or whenever 14.4 million barrels of oil equivalent have been produced from its wells, whichever comes later. As of its last annual filing, the underlying properties with approximately 1,000 wells primarily producing oil have a projected reserve life of at least 50 years.
Liza is right on. Just look at the last quarter press release which says they sold 219,869 BOE in the quarter. Then multiple by four to get 840,000 BOE at the current production level = 0.84 MBOE per year. This is an optimistic simplification because the output has historically declined over the years, and a lot of the 14.4 MBOE has already been pumped and sold in past years. The only way for the trust to operate even until 2026 will be to sell less BOE every year until then to stay under the 14.4 MBOE limit.
As Liza points out, there is little motivation for them to invest in the fields to increase production until the trust expires, because then they will no longer have to share income with the trust.