The Bank of New York Mellon Trust Company, N.A., as Trustee
919 Congress Avenue, Austin, TX 78701
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Whiting USA Trust I Announces Trust Quarterly Distribution
Q – How long are the trust’s distributions expected to last?
A – Based on independent engineering at December 31, 2011, the trust is expected to terminate in August 2015. That is the estimated time when 9.11 million barrels of oil equivalent (the oil and gas reserves attributable to the trust) are expected to be produced and sold.
Q – What will be the value of the units when the trust terminates?
A – Zero. There will be a final cash distribution to unit owners, and the properties associated with the trust will revert back to Whiting Petroleum Corporation.
Q – What percentage of the trust’s reserves is oil versus natural gas?
A – Based on year-end 2010 independent engineering, approximately 63% of the trust’s proved developed producing reserves were oil and 37% were natural gas.
Q – To determine the yield from the trust’s distributions, does one take the total annual distributions and divide by the purchase price?
A – The distributions include return of capital so they should not be treated as dividends. The estimated internal rate of return on the trust based on the initial offering price of $20 per unit is approximately 9.0%.
Q – For tax reporting purposes, does the trust issue a K-1?
A – No. A tax guide will be sent to unit owners in January of each year. The tax guide will also be available on the trust’s website at: http://www.businesswire.com/portal/site/home/news/company?vnsId=43401
Typically, the tax information for the trust can be reported on a 1099.
Q – Who should I contact if I have questions about the trust?
A – Please contact the trustee: Mike Ulrich of The Bank of New York Mellon Trust Company at 512.236.6599.