VOC Energy Trust Profile
VOC Energy Trust (Trust) operates as a statutory trust.
The Trust acquires and holds a term net profits interest representing the right to receive 80% of the net proceeds from production from the Underlying Properties. The net profits interest consists of working interests in substantially all of the oil and natural gas properties held by VOC Brazos and VOC Kansas in the states of Kansas and Texas as of the date of the conveyance of the net profits interest to the Trust. The company refers to the properties in which the Trust holds the net profits interest as the ‘Underlying Properties’.
As of December 31, 2021, the underlying properties included interests in 743 gross (452.5 net) producing wells and included 82,615 gross (51,147.2 net) acres.
Major Producing Areas
Kansas: As of December 31, 2021, proved reserves attributable to the portion of the Kansas underlying properties were approximately 2.9 MMBoe and were located in three primary areas: Central Kansas Uplift, Western Kansas and South Central Kansas. As of December 31, 2021, the VOC Operators operated 97.9% of the total proved reserves attributable to the Kansas underlying properties based on PV-10 value.
The major fields in the Central Kansas Uplift include Fairport Field, Marcotte Field and Chase-Silica Field, all of which are producing primarily from the Arbuckle and Lansing Kansas City zones. The major fields in Western Kansas include the Bindley, Griston SW and Rosa Northwest fields, which are producing primarily from the Mississippian, Morrow, Lansing Kansas City and Cherokee zones. The major fields in South Central Kansas include the Gerberding, Spivey Grabs and Alford fields, which are producing primarily from the Mississippian, Simpson and Lansing Kansas City zones.
Texas: As of December 31, 2021, proved reserves attributable to the Texas underlying properties were approximately 5.4 MMBoe and are located in two areas: Central Texas and East Texas. As of December 31, 2021, the VOC Operators operated approximately 99.2% of the total proved reserves attributable to the Texas underlying properties based on PV-10 value.
Central Texas production is attributable to the Kurten Woodbine Unit, which is producing primarily from the EagleBine Interval, Buda and Georgetown zones. East Texas properties include the Sand Flat field and Hitts Lake North field, each of which is producing primarily from the Paluxy and Chisum zones.
Marketing and Post-Production Services
Vess Oil Corporation generally sells production from the underlying properties to several purchasers, including MV Purchasing, LLC, an affiliate of VOC Brazos, which the company refers to as ‘MV Purchasing’. For the year ended December 31, 2021, MV Purchasing purchased 35% of the production sold from the underlying properties.
VOC Brazos sells the majority of the oil production from the underlying properties under short-term arrangements using market sensitive pricing.
Regulation
VOC Brazos is required to observe anti-market manipulation laws and related regulations enforced by the FERC and/or the Commodity Futures Trading Commission, or the CFTC, and the Federal Trade Commission, or FTC.
The operations of VOC Brazos are subject to a number of federal and state laws and regulations, including the federal Occupational Safety and Health Act, or ‘OSHA’, and comparable state statutes, whose purpose is to protect the health and safety of workers. In addition, the OSHA hazard communication standard, the EPA community right-to-know regulations under Title III of the federal Superfund Amendment and Reauthorization Act and comparable state statutes require in certain circumstances that information be maintained concerning hazardous materials used or produced in VOC Brazos’ operations and that this information be provided to employees, state and local government authorities and citizens. VOC Brazos believes that it is in substantial compliance with all applicable laws and regulations relating to worker health and safety.
History
VOC Energy Trust was founded in 2010 under the Delaware Statutory Trust Act. The company was incorporated in 2010.
