VOC had a catastrophic quarter for reasons that were at least explicit, if not understandable. I'm still not sure why it costs VOC's drilling company $5 million to fix a well it only costs $1 million to drill, but that's another issue. With WHZ, the failure is neither explicit nor understandable. It is turning out to be quite a bit more difficult than I thought to find an oil trust that will even return your capital to you, much less actually make money. GLTA
Looking at their numbers now and am probably going to have to thinking of selling soon...
1: 1.7 MMBOE in the first year. Thats 16% of their 10.61 MMBOE max. Not sure how where the 8% production decline rate comes into effect but if $3.25 in distributions is 16% of this trust then $20.31 is the max value of the trust.... leaving $17.06 as its remaining value. Obviously highly dependent on future energy prices but I think you guys get my point.
2: Their development costs more then doubled Q/Q. That accounts for 1.3m of the 2.0m less cash for distributions.
projected distributions from prospectus
2012 Q1 0.88
2012 Q2 1.12
2012 Q3 0.97
2012 Q4 1.05
2012 Q1 0.955
2012 Q2 0.894
2012 Q3 0.761
2012 Q4 0.651
Higher than expected on the first distribution then downhill from there.