Eastern American Natural Gas Trust Announces Intention to File
Amended Annual Report for 2003 to Correct Gas Volume Estimates of Reserves
Attributable to Its Net Profits Interests
CHARLESTON, W.Va., April 29 /PRNewswire/ --
Eastern American Natural Gas Trust
(CUSIP No. 276217106) (the "Trust") announced today that the gas volume
estimates of net proved reserves attributable to the Trust's royalty and term
net profits interests (respectively, "Royalty NPI," "Term NPI," and
collectively, "NPI") previously provided to the Trust and reported in the
Trust's annual report on Form 10-K for the year ended December 31, 2003, are
incorrect.
The Trust has been informed of the following by the independent petroleum
consultant who provided the Trust with the gas reserve information reported in
the Trust's 2003 annual report:
-- that the figures for the gas volume estimates of net proved reserves
attributable to the Trust's NPI that were so provided and reported
were provided and reported without being reduced to reflect expenses
attributable to the Trust's NPI;
-- that the incorrect estimates so provided and reported relate only to
the gas volume estimates of net proved reserves attributable to the
Trust's NPI and not to the corresponding estimates of future net cash
inflows and their present value at 10% attributable to the Trust's
NPI that the independent petroleum consultant provided to the Trust
and that were reported in the Trust's annual report for 2003; and
-- that these estimates of future net cash inflows and their present
value at 10% that were so provided and reported were provided and
reported after being reduced to reflect expenses attributable to the
Trust's NPI.
The Trust, after consultation with its independent auditors, understands that
except as noted below in connection with Note 7 to the Financial Statements,
titled "Supplemental Reserve Information (Unaudited)," the portions of the
financial statements and related notes that were audited and that were
published in the annual report for 2003, including the Statements of Assets,
Liabilities and Trust Corpus as of December 31, 2003 and 2002, Statements of
Distributable Income for the years ended December 31, 2003, 2002, and 2001,
Statements of Changes in Trust Corpus for the years ended December 31, 2003,
2002 and 2001, are not impacted by the above referenced incorrect information.
The Trust has been informed, however, that the above referenced incorrect
information does impact Note 7 to the Financial Statements, titled
"Supplemental Reserve Information (Unaudited)."
After receipt of final revised estimates from the Trust's independent petroleum
consultant upon completion of that consultant's review, the Trust intends to
file an amended annual report for 2003 on Form 10-K/A. Based on preliminary
estimates received from the Trust's independent petroleum consultant, which are
subject to further analysis and verification, it is anticipated that the
Trust's amended annual report would reflect the following changed information:
-- The description of the Trust's underlying properties would be revised
to change the approximate amount of proved developed reserves
attributable to the Net Profits Interests (reflecting quantities of
gas free of future costs and expenses based on estimated prices) to
approximately 18,761 MMcf;
-- The table reflecting the Proved Gas Reserves (MMcf) of the Trust and
the corresponding tables in the Reserve Report of the independent
petroleum engineering consulting firm would be revised to change the
amounts for Royalty NPI to approximately 11,294 MMcf, for Term NPI to
approximately 7,467 MMcf and for Total to approximately 18,761 MMcf;
and
-- Related and corresponding changes would be made to the tables
contained in Note 7 to the Financial Statements of the Trust, titled
"Supplemental Reserve Information (Unaudited)."
For more information, call: (312) 827-8567. A representative of the Trust will
return your call.
Note: The Trust makes no representations as to the correctness of the "CUSIP"
numbers either as printed on the Units or as contained in this press release.
Forward-Looking Statements
Certain statements provided in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements are subject to risks, uncertainties
and other factors, which could cause actual results to differ materially from
future results expressed or implied by such forward-looking statements. The
most significant of such factors include, but are not limited to, the
following: changes in gas prices, gas production levels, general economic
conditions, competitive conditions, and government legislation and regulations,
including changes in tax rates. Readers are cautioned to carefully consider
such factors. Further, such forward-looking statements speak only as of the
date on which such statements are made, and the Trust undertakes no obligation
to update any forward-looking statements to reflect events or circumstances
after the date of such statements. Any or all of the forward-looking statements
that are made in Form 10-K or any other public statements issued on behalf of
the Trust may turn out to be wrong. It is important to remember that other
factors besides those listed above could also adversely affect the Trust, its
operating results or financial condition.
DATASOURCE: Eastern American Natural Gas Trust
CONTACT: Representative of Eastern American Natural Gas Trust,
+1-312-827-8567