{"success":true,"data":{"pressRelease":{"id":"77178","rtpr_id":"nBw7jlKrba","ticker":"ROYTL","exchange":"OTC","all_tickers":["ROYTL"],"title":"Pacific Coast Oil Trust Announces Monthly Net Profits Interest Calculations","author":"Business Wire","published_at":"2026-06-30T20:15:00.195Z","article_body":"Pacific Coast Oil Trust Announces Monthly Net Profits Interest Calculations\n\nPACIFIC COAST OIL TRUST (OTC–ROYTL) (the “Trust”), a royalty trust\nformed by Pacific Coast Energy Company LP (“PCEC”), announced today that\nthere will be no cash distribution to the holders of its units of beneficial\ninterest of record on June 30, 2026 based on the Trust’s calculation of net\nprofits generated during April 2026 (the “Current Month”) as provided in\nthe conveyance of net profits interests and overriding royalty interest (the\n“Conveyance”). As further described below under “Update on Estimated\nAsset Retirement Obligations,” based on information from PCEC, any monthly\npayments that PCEC may make to the Trust may not be sufficient to cover the\nTrust’s administrative expenses and outstanding debt to PCEC, and therefore\nthe likelihood of distributions to the unitholders in the foreseeable future\nis extremely remote. As further described below under “Status of the\nDissolution of the Trust”, because the annual cash proceeds received by the\nTrust from its net profits interests (the “Net Profits Interests”) and\n7.5% overriding royalty interest (the “Royalty Interest”) totaled less\nthan $2.0 million for each of 2020 and 2021, the amended and restated trust\nagreement governing the Trust (the “Trust Agreement”) provides that the\nTrust is to be dissolved and wound-up. All financial and operational\ninformation in this press release has been provided to the Trustee by PCEC.\n\nOn May 20, 2026, Shipyard Capital, LP, Cedar Creek Partners, Walter Keenan,\nCromwell Capital, LLC, Timothy Eriksen, Eriksen Family, LLC and Revi Ramesh\nDesai, derivatively on behalf of the Trust and, in the alternative,\nindividually, filed a complaint against the Trustee alleging breach of\ncontract, breach of fiduciary duty, gross negligence and willful misconduct,\nand negligent misrepresentation, in connection with PCEC’s deduction of its\nasset retirement obligations discussed below under “Update on Estimated\nAsset Retirement Obligations.” Among other things, the plaintiffs also seek\nto enjoin the Trustee from dissolving the Trust or selling Trust assets\npending resolution of the action. The Trustee has made demand upon PCEC for\nindemnification pursuant to Section 6.02 of the Trust Agreement and Section\n6(b) of the registration rights agreement to which the Trust and PCEC are\nparties. The Trustee has not yet fully analyzed any claims it may make in\nconnection with the litigation.\n\nOn October 23, 2024, a terminated employee of PCEC filed a complaint, styled\nBrendan Potyondy v. Pacific Coast Energy Company, LP, in the U.S. District\nCourt for the Central District of California alleging that PCEC retaliated\nagainst him for engaging in protected whistleblowing activities in violation\nof federal and state laws. The plaintiff alleges that he filed certain reports\nwith several federal and state agencies alleging violations of law by PCEC.\nAmong the agencies plaintiff has contacted or alleges to have contacted are\nthe U.S. Securities and Exchange Commission (“SEC”), the U.S. Department\nof Labor’s Occupational Safety and Health Administration (“OSHA”) the\nCalifornia Occupational Safety and Health Administration, the California\nGeologic Management Division, and the California Department of Fish and\nWildlife. In his complaint to the SEC, the plaintiff alleges, among other\nthings, that PCEC had purposefully provided false data to the Trustee and to\nthe Trust’s independent registered public accounting firm regarding PCEC’s\noperations, including the calculation of its asset retirement obligations. On\nNovember 22, 2024, Mr. Potyondy filed an amended complaint, which removed all\nclaims alleging violation of state law and all allegations of alleged reports\nto state agencies. On January 28, 2025, the Court granted PCEC’s motion to\ndismiss Mr. Potyondy’s remaining claim, but granted him until February 11,\n2025 to file an amended complaint to attempt to fix the defects the Court\nidentified in Mr. Potyondy’s complaint. On February 6, 2025, Mr. Potyondy\nfiled his second amended complaint. PCEC moved to dismiss the amended\ncomplaint on February 18, 2025. The Court heard the motion on March 21, 2025,\nand on April 11, 2025, denied PCEC’s motion to dismiss in its entirety;\ntherefore, Mr. Potyondy’s federal suit against PCEC will proceed. PCEC has\nindicated to the Trustee that it maintains the plaintiff’s allegations are\nwithout merit and that PCEC will defend against these allegations. On May 23,\n2025, OSHA notified Mr. Potyondy that the agency was closing Mr. Potyondy’s\nadministrative complaint because there was insufficient evidence that PCEC was\naware that Mr. Potyondy had filed complaints with outside agencies or were\nnotified of such complaints. Mr. Potyondy appealed the dismissal of his\nadministrative complaint, and a hearing on his appeal had been set for April\n2, 2026. Mr. Potyondy withdrew his administrative appeal prior to the April 2,\n2026 hearing. On April 17, 2026, the Court heard PCEC’s motion for summary\njudgment. The motion was granted in part and denied in part. Although Mr.\nPotyondy can move forward with his claim, he is barred from recovery of\npunitive damages. No trial date has been set. Meanwhile, the Trustee is in the\nprocess of independently investigating the relevant allegations made in the\nSEC complaint.\n\nThe Current Month’s distribution calculation for the Developed Properties\nreflected operating income of approximately $1,304,000, as revenues from the\nDeveloped Properties were approximately $3.0 million, lease operating expenses\nincluding production taxes were approximately $1.7 million, and development\ncosts were approximately $1,300. The average realized price for the Developed\nProperties was $85.57 per Boe for the Current Month, as compared to $84.94 per\nBoe in March 2026 (the “Prior Month”). The cumulative net profits deficit\nfor the Developed Properties decreased from $11.7 million in the Prior Month\nto approximately $11.0 million in the Current Month, as further discussed\nbelow under “Update on Estimated Asset Retirement Obligations”.\n\nAs revenues from the Remaining Properties during the Current Month were\nsufficient to repay the remaining cumulative net profits deficit for the\nRemaining Properties, the Trust received income from the 25% net profits\ninterest instead of income from the 7.5% overriding royalty interest, as\nprovided under the Conveyance. Revenues from the Remaining Properties were\napproximately $1.3 million and lease operating expenses including property\ntaxes were approximately $0.6 million. Average realized prices for the\nRemaining Properties were $83.19 per Boe for the Current Month, as compared to\n$84.12 per Boe for the Prior Month. Income from the net profits interest for\nthe Remaining Properties for the Current Month was approximately $130,000,\noffset by the remaining cumulative net profits deficit of approximately\n$65,000, resulting in a net amount of approximately $65,000 payable to the\nTrust, as further discussed below under “Update on Estimated Asset\nRetirement Obligations”.\n\nThe monthly operating and services fee of approximately $119,000 payable to\nPCEC, together with Trust general and administrative expenses of approximately\n$29,000, exceeded the payment of approximately $65,000 received from PCEC with\nrespect to the Remaining Properties, creating a shortfall of approximately\n$83,000.\n\nSales Volumes and Prices\n\nThe following table displays PCEC’s underlying sales volumes and average\nprices for the Current Month:\n                           Underlying Properties                           \n                           Sales Volumes                    Average Price  \n                           (Boe)          (Boe/day)         (per Boe)      \n Developed Properties (a)  35,191         1,173             $85.57         \n Remaining Properties (b)  15,165         506               $83.19         \n                                                                           \n (a) Crude oil sales volumes represented 99% of sales volumes              \n (b) Crude oil sales volumes represented 100% of sales volumes             \n\n\nUpdate on Amounts Owed to PCEC by the Trust\n\nPCEC has provided the Trust with a $1 million letter of credit to be used by\nthe Trust if its cash on hand (including available cash reserves) is not\nsufficient to pay ordinary course administrative expenses as they become due.\nAs of March 31, 2021, the letter of credit has been fully drawn down. Further,\nthe Trust Agreement provides that if the Trust requires more than the $1\nmillion under the letter of credit to pay administrative expenses, PCEC will,\nupon written request of the Trustee, loan funds to the Trust in such amount as\nnecessary to pay such expenses. Although PCEC has continued to loan funds to\nthe Trust as required under the Trust Agreement, the reduced ability to\ntransport production from the Orcutt properties as discussed below under\n“Cancellation of Connection Agreement with Phillips 66”, as well as recent\ndeclines in crude oil prices, have affected PCEC’s ability to loan on a\ntimely basis the full amount of the funds requested by the Trustee in recent\nperiods. As of the date of this press release, PCEC has fulfilled its\nobligations to loan all requested funds to the Trust. Under the Trust\nAgreement, the Trust may only use funds provided under the letter of credit or\nloaned by PCEC or another source to pay the Trust’s current accounts or\nother obligations to trade creditors in connection with obtaining goods or\nservices or for the payment of other accrued current liabilities arising in\nthe ordinary course of the Trust’s business. As the Trust has fully drawn\ndown the letter of credit, PCEC has loaned funds to the Trust pursuant to a\npromissory note to pay shortfalls related to previous months and is expected\nto loan funds to pay this month’s shortfall of approximately $83,000.\n\nAs of the end of the Current Month, the Trust owed PCEC approximately $13.6\nmillion (which includes the amount drawn from the letter of credit, amounts\nborrowed under the promissory note, and in each case, net accrued interest).\n\nLoans made to the Trust and amounts drawn from the letter of credit, together\nwith interest thereon, will be repaid from proceeds, if any, payable to the\nTrust pursuant to the Net Profits Interests and the Royalty Interest, and from\nany proceeds from a sale of the Trust’s assets in connection with the\ndissolution of the Trust. Consequently, no further distributions may be made\nuntil the Trust’s indebtedness created by such amounts drawn or borrowed,\nincluding interest thereon, has been paid in full. Given the outstanding\namount borrowed by the Trust to date, there may not be any net proceeds from a\nsale of the Trust’s assets to be distributed to the Trust unitholders.\n\nUpdate on Estimated Asset Retirement Obligations\n\nAs previously disclosed, in November 2019, PCEC informed the Trustee that, as\npermitted by the Conveyance, PCEC intended to begin deducting its estimated\nasset retirement obligations (“ARO”) associated with the West Pico, Orcutt\nHill, Orcutt Hill Diatomite, East Coyote and Sawtelle fields, thereby reducing\nthe amounts payable to the Trust under its Net Profits Interests. ARO is the\nrecognition related to net present value of future plugging and abandonment\ncosts that all oil and gas operators face. PCEC engaged an accounting firm,\nMoss Adams LLP (“Moss Adams”), acting as third-party consultants, to\nassist PCEC in determining its estimated ARO, and on February 27, 2020, PCEC\ninformed the Trustee that based on the analysis performed by Moss Adams,\nPCEC’s estimated ARO, as of December 31, 2019, was $45,695,643, which is\napproximately $10.0 million less than the undiscounted amount that was\noriginally estimated before Moss Adams completed its analysis, as previously\ndisclosed in the Trust’s Current Report on Form 8-K filed on November 13,\n2019. According to PCEC and its third-party consultants, its estimated ARO,\nwhich reflected PCEC’s assessment of current market conditions as of\nDecember 31, 2019 and changes in California law, was determined to be\napproximately $33.2 million for the Developed Properties and approximately\n$12.5 million for the Remaining Properties, or approximately $26.5 million and\napproximately $3.1 million net to the Trust, respectively, and PCEC has\nreflected these amounts beginning with the calculation of the net profits\ngenerated during January 2020.\n\nPCEC has informed the Trustee that in accordance with generally accepted\naccounting principles, PCEC will evaluate the ARO on a quarterly basis. As a\nresult of that re-evaluation, the actual ARO incurred in the future may be\ngreater or less than the estimated amounts provided by PCEC. As previously\ndisclosed, PCEC has informed the Trustee that at year-end 2020, and following\nthe end of each of the first, second and third quarters of 2021, in light of\nthe accounting guidance under Accounting Standards Codification (“ASC”)\n410-20-35-3, which requires the recognition of changes in the asset retirement\nobligation due to the passage of time and revision of the timing or amount of\nthe originally estimated undiscounted cash flows, PCEC re-evaluated the\nestimated ARO, which resulted in an aggregate increase to the ARO accrual for\nthe Developed Properties by approximately $5.1 million, net to the Trust’s\ninterest, and an aggregate increase to the ARO accrual for the Remaining\nProperties by approximately $288,000, net to the Trust’s interest. PCEC\npreviously informed the Trustee that PCEC has recognized additional asset\nretirement obligations for the year ended December 31, 2021, in the amount of\napproximately $1.2 million, of which approximately $0.4 million relates to the\nDeveloped Properties, while approximately $0.8 million relates to the\nRemaining Properties. Net to the Trust’s interests, this represents an\nupward ARO revision of approximately $0.3 million and approximately $0.2\nmillion for the Developed Properties and the Remaining Properties,\nrespectively.\n\nIn June 2023, PCEC engaged Cornerstone Engineering, Inc. (“Cornerstone”)\nto perform an ARO evaluation for the West Pico and Orcutt Hill fields. Based\non Cornerstone’s report, Moss Adams has provided PCEC with an updated ARO\nvaluation that reflects an upward adjustment in the ARO values as of December\n31, 2022, of approximately $13.7 million discounted to December 31, 2022, with\na cumulative increase in the accretion for the first three quarters of 2023 of\napproximately $1.0 million net to the Trust’s interests. The adjustment in\nthe ARO values as of December 31, 2022, and accretion was recorded as a single\nadjustment during September for the calculated difference between the\npreviously recorded ARO values and the new value including accretion through\nSeptember 2023. These adjustments were reflected in the net profits interest\ncalculations for September 2023.\n\nPCEC has informed the Trustee that in the net profits calculation for the\nCurrent Month, PCEC reflected upward adjustments in the ARO of approximately\n$470,000 ($376,000 net to the Trust’s 80% net profits interest) for the\nDeveloped Properties and approximately $143,000 ($36,000 net to the Trust’s\n25% net profits interest) for the Remaining Properties related to accumulated\naccretion on the ARO. PCEC has informed the Trustee that it expects to\ncontinue to make accretion adjustments monthly going forward.\n\nThe net profits deficit for the Developed Properties decreased from\napproximately $11.7 million to approximately $11.0 million in the Current\nMonth, while the net profits deficit for the Remaining Properties was\neliminated in the Current Month. The net profits deficit for the Developed\nProperties must be recouped from proceeds otherwise payable to the Trust from\nthe 80% Net Profits Interest. The Trust is not responsible for the payment of\nthe deficit, which will continue to be repaid out of the proceeds from the Net\nProfits Interests following the sale thereof in connection with the\ndissolution of the Trust. Proceeds from such sale would be used to repay\namounts drawn from the letter of credit and borrowed from PCEC and to pay the\nexpenses of the Trust, including any estimated future remaining expenses, with\nany remaining net proceeds to be distributed to the Trust unitholders; sale\nproceeds will not be reflected in any monthly net profits interest calculation\nand therefore would not be applied to repayment of any net profits deficit in\nexistence at the time of such sale.\n\nBased on PCEC’s estimate of its ARO attributable to the Net Profits\nInterests, deductions relating to estimated ARO are likely to eliminate the\nlikelihood of any distributions to Trust unitholders for the foreseeable\nfuture, as previously disclosed in the Trust’s Current Report on Form 8-K\nfiled on November 13, 2019.\n\nAs previously disclosed, the Trust engaged Martindale Consultants, Inc.\n(“Martindale”), a provider of analysis and compliance review services to\nthe oil and gas industry, to perform an independent review of the estimated\nARO in the Moss Adams report that PCEC provided to the Trustee. The Trustee\nalso has engaged an accounting expert to advise the Trustee regarding the\naccruals that PCEC has booked relating to its estimated ARO. As disclosed in\nthe Trust’s Current Report on Form 8-K filed on December 29, 2020,\nMartindale has completed its review of the estimated ARO and on December 21,\n2020, provided its analysis and recommendations to the Trustee. Based on\nMartindale’s recommendations provided in its report to the Trust, as\ndisclosed in the Trust’s Current Report on Form 8-K filed on December 29,\n2020, the Trustee requested that PCEC promptly make several adjustments to its\ncalculations and methods of deducting ARO from the proceeds to which the Trust\nis otherwise entitled pursuant to its Net Profits Interests. PCEC has\nresponded to the Trustee, indicating PCEC’s view that the adjustments would\nviolate applicable contracts and accounting standards, and has therefore\ndeclined to make any adjustments to the estimated ARO calculation based on\nthose requests and the recommendations of the Martindale report. The Trustee\nhas concluded that it has taken all actions reasonably available to it under\nthe Trust’s governing documents in connection with PCEC’s ARO calculation\nand therefore has determined not to take further action at this time.\n\nStatus of the Dissolution of the Trust\n\nAs described in more detail in the Trust’s filings with the SEC, the Trust\nAgreement provides that the Trust will terminate if the annual cash proceeds\nreceived by the Trust from the Net Profits Interests and the Royalty Interest\ntotal less than $2.0 million for each of any two consecutive calendar years.\nBecause of the cumulative net profits deficit—which PCEC contends is the\nresult of the substantial reduction in commodity prices during 2020 due to the\nCOVID-19 pandemic and PCEC’s deduction of estimated ARO beginning in the\nfirst quarter of 2020—the only cash proceeds the Trust has received from\nMarch 2020 has been attributable to the Royalty Interest, other than the\nperiod from August 2022 through February 2023, when the net profits deficit\nwith respect to the Remaining Properties had been eliminated. As a result, the\ntotal proceeds received by the Trust in each of 2020 and 2021 were less than\n$2.0 million. Therefore, the Trust had been expected to terminate by its terms\nat the end of 2021.\n\nEvergreen Arbitration\n\nAs previously disclosed in the Trust’s Current Report on Form 8-K filed on\nDecember 23, 2021, on December 8, 2021, Evergreen Capital Management LLC\n(“Evergreen”) filed an Amended Class Action and Shareholder Derivative\nComplaint alleging a derivative action on behalf of the Trust and against PCEC\nin the Superior Court of the State of California for the County of Los Angeles\n(the “Court”).\n\nOn December 10, 2021, Evergreen filed a motion for temporary restraining order\nand for preliminary injunction, seeking to (1) enjoin the Trustee from\ndissolving the Trust, (2) enjoin PCEC from dissolving the Trust, (3) direct\nPCEC to account for all monies withheld from the Trust on the basis of ARO\ncosts since September 2019, and (4) direct PCEC to place such monies in\nescrow. On December 16, 2021, the Court granted Evergreen’s application for\na temporary restraining order only to the extent of enjoining the dissolution\nof the Trust. Accordingly, the Trust did not dissolve at the end of 2021 and\ncommence the process of selling its assets and winding up its affairs.\n\nOn January 11, 2022, PCEC and Evergreen filed an agreed stipulation to stay\nthe prosecution of Evergreen’s derivative claims pending an arbitration of\nsuch claims. On January 13, 2022, the Court signed an Order dissolving the\nDecember 16, 2021, temporary restraining order and entering a new temporary\nrestraining order to preserve the status quo until a tribunal of three\narbitrators appointed pursuant to the Trust Agreement could rule on any\nrequest by Evergreen for injunctive relief. On April 11, 2022, PCEC notified\nthe Court, at the arbitrators’ request, that the arbitration panel had\nissued an order on April 7, 2022, denying Evergreen’s request for injunctive\nrelief. On April 13, 2022, Evergreen notified the Court that Evergreen had\nfiled a motion for reconsideration with the arbitration panel that same day,\nwhich was denied on May 26, 2022. On August 30, 2022, the arbitration panel\nissued a Partial Final Award dismissing with prejudice Evergreen’s\nderivative claims against PCEC, including Evergreen’s application for an\ninjunction. On December 5, 2023, the California Superior Court confirmed that\nPartial Final Award.\n\nOn June 20, 2022, Evergreen filed an amended pleading in the arbitration,\nadding the Trustee as a party to that proceeding. In early September 2022,\nEvergreen informed the Trustee that it was going to seek a preliminary\ninjunction while its claims against the Trustee were pending. At the request\nof the arbitration panel, the Trustee agreed to take no steps toward the sale\nof the Trust corpus until the Panel decided Evergreen’s application for a\npreliminary injunction. On September 12, 2022, the Trustee filed a motion to\ndismiss Evergreen’s claims against the Trustee. On September 22, 2022,\nEvergreen filed an opposition to the Trustee’s motion to dismiss. On\nSeptember 15, 2022, Evergreen filed a motion to enjoin the Trustee from\nselling the Trust assets or dissolving the Trust during the pendency of the\narbitration. The Trustee and PCEC filed a response in opposition to\nEvergreen’s motion on September 22, 2022. Both motions were heard by the\nPanel on October 24, 2022. On October 31, 2022, the Panel granted the\nTrustee’s motion and dismissed Evergreen’s claims against the Trustee with\nprejudice, which mooted Evergreen’s request for injunctive relief.\n\nEvergreen has sought appeal of each of the judgments. Those appeals were\nconsolidated in the Second Appellate District on November 1, 2023. On March\n20, 2025, the California Court of Appeals heard oral arguments in the appeal,\nand on May 21, 2025, the Court of Appeals issued its decision affirming the\narbitration awards that dismissed Evergreen’s claims with prejudice.\n\nSubject to the outcome of the Trustee’s investigation of the relevant\nallegations in the whistleblower complaint against PCEC described above, and\nsubject to the resolution of the derivative action against the Trustee\ndescribed above, the Trustee plans to move forward with the winding up of the\nTrust in accordance with the provisions of the Trust Agreement, which will\ninclude selling all of the Trust’s assets and distributing the net proceeds\nof the sale to the Trust unitholders after payment, or reasonable provision\nfor payment, of all Trust liabilities, including the establishment of cash\nreserves in such amounts as the Trustee in its discretion deems appropriate\nfor the purpose of making reasonable provision for all claims and obligations\nof the Trust, including any contingent, conditional or unmatured claims and\nobligations, in accordance with the Delaware Statutory Trust Act.\n\nPCEC Arbitration\n\nOn March 31, 2023, PCEC submitted a demand for arbitration against the\nTrustee, as trustee of the Trust, seeking, among other things, (1) an order\ncompelling the Trustee to commence the process of dissolving the Trust\npursuant to the provisions of the Trust Agreement, (2) a declaration that the\nConveyance permits the legal fees and costs that PCEC, as operator, incurred\nin defending the Evergreen litigation and arbitration proceedings described\nabove to be deducted from the proceeds from the Net Profits Interests, and (3)\na declaration that the Trust must repay, with interest, the legal fees and\ncosts that PCEC paid on behalf of the Trust to defend claims against the\nTrustee in the Evergreen proceedings or, alternatively, that PCEC may deduct\nsuch legal fees and costs from the proceeds from the Net Profits Interests.\n\nThe hearing before the arbitration panel was concluded on August 2, 2023, and\non September 28, 2023, as previously disclosed, the arbitration panel issued\nits Partial Final Award, in which the panel found as follows:\n\n\n * The Trustee is not required to immediately commence the marketing and sale of\nthe Trust’s assets;\n\n\n * PCEC is entitled to deduct from the net profits its own legal fees and the\nTrustee’s legal fees paid by PCEC in connection with the Evergreen\nproceedings; and\n\n\n * PCEC is not entitled to reimbursement of such legal fees from the proceeds of\nthe sale of the Trust’s assets.\n\nIn its Final Award issued on October 24, 2023, the arbitration panel set forth\nits finding of fact that pursuant to the termination provisions of the Trust\nAgreement, the triggering event for the dissolution of the Trust occurred on\nJanuary 1, 2022 and the Trust is dissolved, and that the Trustee’s remaining\nduties are as specified in Sections 2.02 (Purpose) and 9.03 (Disposition and\nDistribution of Assets and Properties) of the Trust Agreement.\n\nIn light of the arbitration panel’s finding that the Trustee is not required\nto immediately commence the marketing of the Trust’s assets, the Trustee has\ncontinued to work with PCEC and, until its resignation on July 11, 2025 as\npreviously disclosed in the Trust’s Current Report on Form 8-K filed on July\n17, 2025, the Trust’s prior independent auditor, and since its appointment\non March 16, 2026 as previously disclosed in the Trust’s Current Report on\nForm 8-K filed on March 17, 2026, the Trust’s replacement independent\nauditor, Weaver and Tidwell, L.L.P., to complete the audits of the Trust’s\nfinancial statements for the years ended December 31, 2019 through December\n31, 2025 and the reviews of the Trust’s quarterly financial statements for\nthe years 2023, 2024 and 2025 and to prepare a comprehensive annual report on\nForm 10-K as part of the Trust’s efforts to become current in its filing\nobligations under the Securities Exchange Act of 1934, as amended. The Trust\nexpects to file the comprehensive annual report with the Securities and\nExchange Commission as soon as possible after completion of the audits, at\nwhich point the Trustee expects to commence the marketing and sale process,\nsubject to the resolution of the derivative action against the Trustee\ndescribed above; however, additional delays in the completion and filing of\nthe comprehensive annual report will occur as a result of the Trustee’s\ninvestigation of the relevant allegations in the whistleblower complaint\nagainst PCEC described above. In the meantime, the Trustee will continue to\ncommunicate material information to unitholders via press releases and Forms\n8-K.\n\nMeanwhile, because the Partial Final Award confirmed PCEC’s right to deduct\nfrom the net profits its own legal fees and the Trustee’s legal fees paid by\nPCEC in connection with the Evergreen proceedings, PCEC deducted approximately\n$4.0 million of PCEC legal fees (plus approximately $0.4 million in interest),\nor approximately $3.5 million net to the Trust’s 80% net profits interest,\nunder the net profits interest calculations for September 2023, which\nreflected PCEC legal fees paid through September 30, 2023. Through the end of\nthe Current Month, PCEC had further deducted a total of $2.1 million of PCEC\nlegal fees, including adjustments, or approximately $1.7 million net to the\nTrust’s 80% net profits interest, and a total of $1.8 million of the\nTrustee’s legal fees paid by PCEC in connection with the Evergreen\nproceedings, or approximately $1.5 million net to the Trust’s 80% net\nprofits interest. PCEC has indicated to the Trustee that PCEC continues to\nincur fees and expenses related to Evergreen’s appeal of its loss in the\nlitigation and arbitration and will continue to deduct those amounts under the\nmonthly net profits interest calculation as provided in the Conveyance, which\ncould result in further increases to the net profits deficit for the Developed\nProperties.\n\nThe Trust previously borrowed funds from PCEC sufficient to pay the\napproximately $0.9 million of legal fees of the Trustee incurred in connection\nwith the PCEC arbitration, as well as approximately $59,000 representing the\nTrust’s share of the fees of the arbitration panel.\n\nReplacement of the Trustee\n\nAs previously disclosed, at a special meeting of the unitholders of the Trust\nheld on July 12, 2023 (the “Special Meeting”), a majority of the\nunitholders voted to remove The Bank of New York Mellon Trust Company, N.A. as\ntrustee of the Trust. A successor trustee was not nominated for approval at\nthe Special Meeting. Under Section 6.05 of the Trust Agreement, if a new\ntrustee has not been approved within 60 days after a vote of unitholders\nremoving a trustee, a successor trustee may be appointed by any State or\nFederal District Court having jurisdiction in New Castle County, Delaware,\nupon the application of PCEC, any Trust unitholder, or the Trustee.\n\nOn September 11, 2023, PCEC filed a petition with the Court of Chancery of the\nState of Delaware (the “Court”) seeking to appoint Province, LLC as\nsuccessor trustee.\n\nOn September 12, 2023, unitholders Evergreen Capital Management LLC, Shipyard\nCapital LP, Shipyard Capital Management LLC, Cedar Creek Partners LP, Eriksen\nCapital Management LLC and Walter Keenan (collectively, the “Unitholder\nPetitioners”) jointly filed a petition with the Court seeking to appoint\nBarclay Leib as temporary trustee and as successor trustee as of January 1,\n2024. As Section 6.05 of the Trust Agreement requires that any successor\ntrustee must be a bank or trust company having combined capital, surplus and\nundivided profits of at least $100,000,000, the Unitholder Petitioners\nrequested that the Court modify the Trust Agreement to remove that\nrequirement. Subsequently, the Unitholder Petitioners elected not to proceed\nand filed a stipulated dismissal of their petition on October 17, 2023, which\nwas signed by the Court that day.\n\nOn October 31, 2023, PCEC filed a motion for summary judgment with regard to\nthe appointment of a successor or temporary trustee, and the Trustee filed a\nresponse in opposition to that motion on November 14, 2023. The Court denied\nPCEC’s motion at a hearing held on November 28, 2023. PCEC elected not to\nproceed at this time and filed a stipulated dismissal of its petition, without\nprejudice, on February 27, 2024, which was signed by the Court that day.\n\nThe Trustee is unable to predict when a successor trustee will be appointed.\nUntil that time, the Trustee will remain as trustee of the Trust and will\ncontinue to have the rights and obligations as trustee pursuant to the Trust\nAgreement.\n\nThe Trust has borrowed funds from PCEC sufficient to pay the approximately\n$0.3 million legal fees of the Trustee incurred in connection with the\nproceedings initiated by the Unitholder Petitioners, as well as approximately\n$42,000 representing the Trust’s share of court fees.\n\nProduction Update\n\nPCEC has informed the Trustee that PCEC continues to strategically deploy\ncapital to maintain production within export and transportation constraints\nresulting from the previously disclosed termination of the Phillips 66\npipeline Connection Agreement described in greater detail below. These\nconstraints have led to a curtailment of production at Orcutt, resulting in a\ndecrease of 9,405 Bbls (or 17%) for Orcutt in April 2026, as compared to\nDecember 2022, the last full month of production prior to the termination of\nthe Connection Agreement.\n\nOn December 20, 2024, PCEC announced its plans to terminate oil and gas\nproduction at the West Pico Unit. To begin the termination process, in June\n2026 PCEC submitted an application to the City of Los Angeles for a\nmodification of its conditional use permit (“CUP”) to temporarily use\nworkover rigs to safely and efficiently plug and abandon oil wells on the\nsite, with mandatory termination of all oil and gas operations five years from\napproval of the CUP modification. Termination of production at the West Pico\nUnit, when it occurs, will reduce revenues under the Net Profits Interests,\nwhile the expected termination could adversely affect the amount of proceeds\nthat may be received by the Trust from the sale of the Net Profits Interests.\n\nCancellation of Connection Agreement with Phillips 66\n\nAs previously disclosed, PCEC has informed the Trustee that on September 22,\n2022, PCEC received notice from Phillips 66 of the cancellation of the\nConnection Agreement between PCEC and Phillips 66 with respect to the three\nleases located south of Orcutt in Santa Barbara, California, effective upon\ncompletion of PCEC’s deliveries in December 2022. As a result of the\ncancellation, and the subsequent shutdown of the Santa Maria Refinery on\nJanuary 4, 2023, PCEC no longer has a pipeline interconnection between the\nOrcutt properties and the Santa Maria Refinery. This pipeline was the sole\nmeans by which PCEC transported its crude oil from the Orcutt properties,\nwhich relates to approximately 86% and 91% of the production attributable to\nthe Trust’s interests in 2021 and 2022, respectively.\n\nThe shutdown of the refinery and the pipeline has adversely affected PCEC’s\nfinancial performance, the revenues that may be payable to the Trust, and\nPCEC’s ability to provide loans to the Trust on a timely basis in the full\namounts requested by the Trustee. PCEC previously informed the Trustee that it\nwas able to secure a short-term contract to transport oil from the Orcutt\nproperties commencing on January 4, 2023, albeit at reduced volumes and with a\nhigher differential compared to the terms previously achievable through the\nPhillips 66 Connection Agreement. This contract was terminated at the end of\nJune 2025, as previously disclosed, and the refinery that had taken the oil\nproduced from the Orcutt properties has since been closed. Effective October\n1, 2025, PCEC has made arrangements to sell its oil to other purchasers on a\nshort-term basis. Unlike Phillips 66, which would use its own trucks to\ntransport the oil from PCEC locations, the new purchasers do not have their\nown trucks and therefore PCEC will be required to incur additional costs for\nsuch transportation. Since early 2025, PCEC has incurred additional expenses\nfor transportation from the Orcutt properties and has been deducting from\ngross profits the portion of those expenses attributable to the Trust’s\ninterests in accordance with the terms of the Conveyance. PCEC will continue\nto deduct from gross profits the transportation expenses incurred under the\nnew arrangements for the sale of oil from the Orcutt properties. In addition,\nunlike Phillips 66, which did not reduce the price paid to PCEC for the\ngravity and quality of the crude oil delivered, the purchasers under the\ncurrent arrangements adjust the purchase price paid for the crude oil for the\ngravity, quality, and basic sand and water content of the crude oil delivered.\n\nOverview of Trust Structure\n\nPacific Coast Oil Trust is a Delaware statutory trust formed by PCEC to own\ninterests in certain oil and gas properties in the Santa Maria Basin and the\nLos Angeles Basin in California (the “Underlying Properties”). The\nUnderlying Properties and the Trust’s net profits and royalty interests are\ndescribed in the Trust’s filings with the SEC. As described in the Trust’s\nfilings with the SEC, the amount of any periodic distributions is expected to\nfluctuate, depending on the proceeds received by the Trust as a result of\nactual production volumes, oil and gas prices, development expenses, and the\namount and timing of the Trust’s administrative expenses, among other\nfactors. For additional information on the Trust, please visit\nhttps://royt.q4web.com/home/default.aspx\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Froyt.q4web.com%2Fhome%2Fdefault.aspx&esheet=54562736&newsitemid=20260630006028&lan=en-US&anchor=https%3A%2F%2Froyt.q4web.com%2Fhome%2Fdefault.aspx&index=1&md5=45c2a4f7a82eeee3265b7eca7c0d249d)\n.\n\nCautionary Statement Regarding Forward-Looking Information\n\nThis press release contains statements that are \"forward-looking statements\"\nwithin the meaning of Section 21E of the Securities Exchange Act of 1934, as\namended. All statements contained in this press release, other than statements\nof historical facts, are \"forward-looking statements\" for the purposes of\nthese provisions. These forward-looking statements include estimates of future\nasset retirement obligations, expectations regarding the impact of deductions\nfor such obligations on future distributions to unitholders, estimates of\nfuture total distributions to unitholders, the outcome of the proceedings\nrelating to the appointment of a successor trustee, expectations regarding the\ntiming of the termination of oil and gas production at the West Pico Unit,\nuncertainties regarding transportation of oil from the Orcutt properties and\nthe impact of an inability to transport such oil on future payments to the\nTrust, expectations regarding PCEC’s ability to loan funds to the Trust,\nexpectations regarding future borrowing by the Trust and the impact such\nborrowing may have on any net proceeds available for distribution following a\nsale of the Trust’s assets, future legal fees that may be deducted under the\nmonthly net profits interest calculation, expectations regarding the filing of\nthe Trust’s comprehensive annual report on Form 10-K, statements regarding\nthe expected winding down of the Trust, expectations regarding any proceeds\nthat the Trust may receive from a sale of the Trust’s assets, and the amount\nand date of any anticipated distribution to unitholders. In any case, PCEC’s\ndeductions of its estimated asset retirement obligations will have a material\nadverse effect on distributions to the unitholders and on the trading price of\nthe Trust units and may result in the termination of the Trust. Any\nanticipated distribution is based, in part, on the amount of cash received or\nexpected to be received by the Trust from PCEC with respect to the relevant\nperiod. Any differences in actual cash receipts by the Trust could affect this\ndistributable amount. The amount of such cash received or expected to be\nreceived by the Trust (and its ability to pay distributions) has been in the\npast, and may be in the future, significantly and negatively affected by low\ncommodity prices, which could remain low for an extended period of time, and\npossibly decline further, as a result of a variety of factors that are beyond\nthe control of the Trust and PCEC. Other important factors that could cause\nactual results to differ materially include expenses related to the operation\nof the Underlying Properties, including lease operating expenses, expenses of\nthe Trust, reserves for anticipated future expenses, and difficulties in\nobtaining alternative arrangements for the transportation of oil produced from\nthe Orcutt properties. Statements made in this press release are qualified by\nthe cautionary statements made in this press release. Neither PCEC nor the\nTrustee intends, and neither assumes any obligation, to update any of the\nstatements included in this press release. An investment in units issued by\nPacific Coast Oil Trust is subject to the risks described in the Trust's\nAnnual Report on Form 10‑K for the year ended December 31, 2018, filed with\nthe SEC on March 8, 2019, and if applicable, the Trust’s subsequent\nQuarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Trust's\nAnnual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current\nReports on Form 8-K are available over the Internet at the SEC's website at\nhttp://www.sec.gov\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sec.gov&esheet=54562736&newsitemid=20260630006028&lan=en-US&anchor=http%3A%2F%2Fwww.sec.gov&index=2&md5=f2fab75df39f2320ef544182987ba343)\n.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260630006028/en/\n(https://www.businesswire.com/news/home/20260630006028/en/)\n\nPacific Coast Oil Trust\n\nThe Bank of New York Mellon Trust Company, N.A., as Trustee\n\nSarah Newell\n\n1 (512) 236-6555\n\n601 Travis Street, 16th Floor, Houston, TX 77002\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw7jlKrba","title":"Pacific Coast Oil Trust Announces Monthly Net Profits Interest Calculations","author":"Business Wire","ticker":"ROYTL","created":"2026-06-30T20:15:00.195Z","tickers":["ROYTL"],"exchange":"OTC","article_body":"Pacific Coast Oil Trust Announces Monthly Net Profits Interest Calculations\n\nPACIFIC COAST OIL TRUST (OTC–ROYTL) (the “Trust”), a royalty trust\nformed by Pacific Coast Energy Company LP (“PCEC”), announced today that\nthere will be no cash distribution to the holders of its units of beneficial\ninterest of record on June 30, 2026 based on the Trust’s calculation of net\nprofits generated during April 2026 (the “Current Month”) as provided in\nthe conveyance of net profits interests and overriding royalty interest (the\n“Conveyance”). As further described below under “Update on Estimated\nAsset Retirement Obligations,” based on information from PCEC, any monthly\npayments that PCEC may make to the Trust may not be sufficient to cover the\nTrust’s administrative expenses and outstanding debt to PCEC, and therefore\nthe likelihood of distributions to the unitholders in the foreseeable future\nis extremely remote. As further described below under “Status of the\nDissolution of the Trust”, because the annual cash proceeds received by the\nTrust from its net profits interests (the “Net Profits Interests”) and\n7.5% overriding royalty interest (the “Royalty Interest”) totaled less\nthan $2.0 million for each of 2020 and 2021, the amended and restated trust\nagreement governing the Trust (the “Trust Agreement”) provides that the\nTrust is to be dissolved and wound-up. All financial and operational\ninformation in this press release has been provided to the Trustee by PCEC.\n\nOn May 20, 2026, Shipyard Capital, LP, Cedar Creek Partners, Walter Keenan,\nCromwell Capital, LLC, Timothy Eriksen, Eriksen Family, LLC and Revi Ramesh\nDesai, derivatively on behalf of the Trust and, in the alternative,\nindividually, filed a complaint against the Trustee alleging breach of\ncontract, breach of fiduciary duty, gross negligence and willful misconduct,\nand negligent misrepresentation, in connection with PCEC’s deduction of its\nasset retirement obligations discussed below under “Update on Estimated\nAsset Retirement Obligations.” Among other things, the plaintiffs also seek\nto enjoin the Trustee from dissolving the Trust or selling Trust assets\npending resolution of the action. The Trustee has made demand upon PCEC for\nindemnification pursuant to Section 6.02 of the Trust Agreement and Section\n6(b) of the registration rights agreement to which the Trust and PCEC are\nparties. The Trustee has not yet fully analyzed any claims it may make in\nconnection with the litigation.\n\nOn October 23, 2024, a terminated employee of PCEC filed a complaint, styled\nBrendan Potyondy v. Pacific Coast Energy Company, LP, in the U.S. District\nCourt for the Central District of California alleging that PCEC retaliated\nagainst him for engaging in protected whistleblowing activities in violation\nof federal and state laws. The plaintiff alleges that he filed certain reports\nwith several federal and state agencies alleging violations of law by PCEC.\nAmong the agencies plaintiff has contacted or alleges to have contacted are\nthe U.S. Securities and Exchange Commission (“SEC”), the U.S. Department\nof Labor’s Occupational Safety and Health Administration (“OSHA”) the\nCalifornia Occupational Safety and Health Administration, the California\nGeologic Management Division, and the California Department of Fish and\nWildlife. In his complaint to the SEC, the plaintiff alleges, among other\nthings, that PCEC had purposefully provided false data to the Trustee and to\nthe Trust’s independent registered public accounting firm regarding PCEC’s\noperations, including the calculation of its asset retirement obligations. On\nNovember 22, 2024, Mr. Potyondy filed an amended complaint, which removed all\nclaims alleging violation of state law and all allegations of alleged reports\nto state agencies. On January 28, 2025, the Court granted PCEC’s motion to\ndismiss Mr. Potyondy’s remaining claim, but granted him until February 11,\n2025 to file an amended complaint to attempt to fix the defects the Court\nidentified in Mr. Potyondy’s complaint. On February 6, 2025, Mr. Potyondy\nfiled his second amended complaint. PCEC moved to dismiss the amended\ncomplaint on February 18, 2025. The Court heard the motion on March 21, 2025,\nand on April 11, 2025, denied PCEC’s motion to dismiss in its entirety;\ntherefore, Mr. Potyondy’s federal suit against PCEC will proceed. PCEC has\nindicated to the Trustee that it maintains the plaintiff’s allegations are\nwithout merit and that PCEC will defend against these allegations. On May 23,\n2025, OSHA notified Mr. Potyondy that the agency was closing Mr. Potyondy’s\nadministrative complaint because there was insufficient evidence that PCEC was\naware that Mr. Potyondy had filed complaints with outside agencies or were\nnotified of such complaints. Mr. Potyondy appealed the dismissal of his\nadministrative complaint, and a hearing on his appeal had been set for April\n2, 2026. Mr. Potyondy withdrew his administrative appeal prior to the April 2,\n2026 hearing. On April 17, 2026, the Court heard PCEC’s motion for summary\njudgment. The motion was granted in part and denied in part. Although Mr.\nPotyondy can move forward with his claim, he is barred from recovery of\npunitive damages. No trial date has been set. Meanwhile, the Trustee is in the\nprocess of independently investigating the relevant allegations made in the\nSEC complaint.\n\nThe Current Month’s distribution calculation for the Developed Properties\nreflected operating income of approximately $1,304,000, as revenues from the\nDeveloped Properties were approximately $3.0 million, lease operating expenses\nincluding production taxes were approximately $1.7 million, and development\ncosts were approximately $1,300. The average realized price for the Developed\nProperties was $85.57 per Boe for the Current Month, as compared to $84.94 per\nBoe in March 2026 (the “Prior Month”). The cumulative net profits deficit\nfor the Developed Properties decreased from $11.7 million in the Prior Month\nto approximately $11.0 million in the Current Month, as further discussed\nbelow under “Update on Estimated Asset Retirement Obligations”.\n\nAs revenues from the Remaining Properties during the Current Month were\nsufficient to repay the remaining cumulative net profits deficit for the\nRemaining Properties, the Trust received income from the 25% net profits\ninterest instead of income from the 7.5% overriding royalty interest, as\nprovided under the Conveyance. Revenues from the Remaining Properties were\napproximately $1.3 million and lease operating expenses including property\ntaxes were approximately $0.6 million. Average realized prices for the\nRemaining Properties were $83.19 per Boe for the Current Month, as compared to\n$84.12 per Boe for the Prior Month. Income from the net profits interest for\nthe Remaining Properties for the Current Month was approximately $130,000,\noffset by the remaining cumulative net profits deficit of approximately\n$65,000, resulting in a net amount of approximately $65,000 payable to the\nTrust, as further discussed below under “Update on Estimated Asset\nRetirement Obligations”.\n\nThe monthly operating and services fee of approximately $119,000 payable to\nPCEC, together with Trust general and administrative expenses of approximately\n$29,000, exceeded the payment of approximately $65,000 received from PCEC with\nrespect to the Remaining Properties, creating a shortfall of approximately\n$83,000.\n\nSales Volumes and Prices\n\nThe following table displays PCEC’s underlying sales volumes and average\nprices for the Current Month:\n                           Underlying Properties                           \n                           Sales Volumes                    Average Price  \n                           (Boe)          (Boe/day)         (per Boe)      \n Developed Properties (a)  35,191         1,173             $85.57         \n Remaining Properties (b)  15,165         506               $83.19         \n                                                                           \n (a) Crude oil sales volumes represented 99% of sales volumes              \n (b) Crude oil sales volumes represented 100% of sales volumes             \n\n\nUpdate on Amounts Owed to PCEC by the Trust\n\nPCEC has provided the Trust with a $1 million letter of credit to be used by\nthe Trust if its cash on hand (including available cash reserves) is not\nsufficient to pay ordinary course administrative expenses as they become due.\nAs of March 31, 2021, the letter of credit has been fully drawn down. Further,\nthe Trust Agreement provides that if the Trust requires more than the $1\nmillion under the letter of credit to pay administrative expenses, PCEC will,\nupon written request of the Trustee, loan funds to the Trust in such amount as\nnecessary to pay such expenses. Although PCEC has continued to loan funds to\nthe Trust as required under the Trust Agreement, the reduced ability to\ntransport production from the Orcutt properties as discussed below under\n“Cancellation of Connection Agreement with Phillips 66”, as well as recent\ndeclines in crude oil prices, have affected PCEC’s ability to loan on a\ntimely basis the full amount of the funds requested by the Trustee in recent\nperiods. As of the date of this press release, PCEC has fulfilled its\nobligations to loan all requested funds to the Trust. Under the Trust\nAgreement, the Trust may only use funds provided under the letter of credit or\nloaned by PCEC or another source to pay the Trust’s current accounts or\nother obligations to trade creditors in connection with obtaining goods or\nservices or for the payment of other accrued current liabilities arising in\nthe ordinary course of the Trust’s business. As the Trust has fully drawn\ndown the letter of credit, PCEC has loaned funds to the Trust pursuant to a\npromissory note to pay shortfalls related to previous months and is expected\nto loan funds to pay this month’s shortfall of approximately $83,000.\n\nAs of the end of the Current Month, the Trust owed PCEC approximately $13.6\nmillion (which includes the amount drawn from the letter of credit, amounts\nborrowed under the promissory note, and in each case, net accrued interest).\n\nLoans made to the Trust and amounts drawn from the letter of credit, together\nwith interest thereon, will be repaid from proceeds, if any, payable to the\nTrust pursuant to the Net Profits Interests and the Royalty Interest, and from\nany proceeds from a sale of the Trust’s assets in connection with the\ndissolution of the Trust. Consequently, no further distributions may be made\nuntil the Trust’s indebtedness created by such amounts drawn or borrowed,\nincluding interest thereon, has been paid in full. Given the outstanding\namount borrowed by the Trust to date, there may not be any net proceeds from a\nsale of the Trust’s assets to be distributed to the Trust unitholders.\n\nUpdate on Estimated Asset Retirement Obligations\n\nAs previously disclosed, in November 2019, PCEC informed the Trustee that, as\npermitted by the Conveyance, PCEC intended to begin deducting its estimated\nasset retirement obligations (“ARO”) associated with the West Pico, Orcutt\nHill, Orcutt Hill Diatomite, East Coyote and Sawtelle fields, thereby reducing\nthe amounts payable to the Trust under its Net Profits Interests. ARO is the\nrecognition related to net present value of future plugging and abandonment\ncosts that all oil and gas operators face. PCEC engaged an accounting firm,\nMoss Adams LLP (“Moss Adams”), acting as third-party consultants, to\nassist PCEC in determining its estimated ARO, and on February 27, 2020, PCEC\ninformed the Trustee that based on the analysis performed by Moss Adams,\nPCEC’s estimated ARO, as of December 31, 2019, was $45,695,643, which is\napproximately $10.0 million less than the undiscounted amount that was\noriginally estimated before Moss Adams completed its analysis, as previously\ndisclosed in the Trust’s Current Report on Form 8-K filed on November 13,\n2019. According to PCEC and its third-party consultants, its estimated ARO,\nwhich reflected PCEC’s assessment of current market conditions as of\nDecember 31, 2019 and changes in California law, was determined to be\napproximately $33.2 million for the Developed Properties and approximately\n$12.5 million for the Remaining Properties, or approximately $26.5 million and\napproximately $3.1 million net to the Trust, respectively, and PCEC has\nreflected these amounts beginning with the calculation of the net profits\ngenerated during January 2020.\n\nPCEC has informed the Trustee that in accordance with generally accepted\naccounting principles, PCEC will evaluate the ARO on a quarterly basis. As a\nresult of that re-evaluation, the actual ARO incurred in the future may be\ngreater or less than the estimated amounts provided by PCEC. As previously\ndisclosed, PCEC has informed the Trustee that at year-end 2020, and following\nthe end of each of the first, second and third quarters of 2021, in light of\nthe accounting guidance under Accounting Standards Codification (“ASC”)\n410-20-35-3, which requires the recognition of changes in the asset retirement\nobligation due to the passage of time and revision of the timing or amount of\nthe originally estimated undiscounted cash flows, PCEC re-evaluated the\nestimated ARO, which resulted in an aggregate increase to the ARO accrual for\nthe Developed Properties by approximately $5.1 million, net to the Trust’s\ninterest, and an aggregate increase to the ARO accrual for the Remaining\nProperties by approximately $288,000, net to the Trust’s interest. PCEC\npreviously informed the Trustee that PCEC has recognized additional asset\nretirement obligations for the year ended December 31, 2021, in the amount of\napproximately $1.2 million, of which approximately $0.4 million relates to the\nDeveloped Properties, while approximately $0.8 million relates to the\nRemaining Properties. Net to the Trust’s interests, this represents an\nupward ARO revision of approximately $0.3 million and approximately $0.2\nmillion for the Developed Properties and the Remaining Properties,\nrespectively.\n\nIn June 2023, PCEC engaged Cornerstone Engineering, Inc. (“Cornerstone”)\nto perform an ARO evaluation for the West Pico and Orcutt Hill fields. Based\non Cornerstone’s report, Moss Adams has provided PCEC with an updated ARO\nvaluation that reflects an upward adjustment in the ARO values as of December\n31, 2022, of approximately $13.7 million discounted to December 31, 2022, with\na cumulative increase in the accretion for the first three quarters of 2023 of\napproximately $1.0 million net to the Trust’s interests. The adjustment in\nthe ARO values as of December 31, 2022, and accretion was recorded as a single\nadjustment during September for the calculated difference between the\npreviously recorded ARO values and the new value including accretion through\nSeptember 2023. These adjustments were reflected in the net profits interest\ncalculations for September 2023.\n\nPCEC has informed the Trustee that in the net profits calculation for the\nCurrent Month, PCEC reflected upward adjustments in the ARO of approximately\n$470,000 ($376,000 net to the Trust’s 80% net profits interest) for the\nDeveloped Properties and approximately $143,000 ($36,000 net to the Trust’s\n25% net profits interest) for the Remaining Properties related to accumulated\naccretion on the ARO. PCEC has informed the Trustee that it expects to\ncontinue to make accretion adjustments monthly going forward.\n\nThe net profits deficit for the Developed Properties decreased from\napproximately $11.7 million to approximately $11.0 million in the Current\nMonth, while the net profits deficit for the Remaining Properties was\neliminated in the Current Month. The net profits deficit for the Developed\nProperties must be recouped from proceeds otherwise payable to the Trust from\nthe 80% Net Profits Interest. The Trust is not responsible for the payment of\nthe deficit, which will continue to be repaid out of the proceeds from the Net\nProfits Interests following the sale thereof in connection with the\ndissolution of the Trust. Proceeds from such sale would be used to repay\namounts drawn from the letter of credit and borrowed from PCEC and to pay the\nexpenses of the Trust, including any estimated future remaining expenses, with\nany remaining net proceeds to be distributed to the Trust unitholders; sale\nproceeds will not be reflected in any monthly net profits interest calculation\nand therefore would not be applied to repayment of any net profits deficit in\nexistence at the time of such sale.\n\nBased on PCEC’s estimate of its ARO attributable to the Net Profits\nInterests, deductions relating to estimated ARO are likely to eliminate the\nlikelihood of any distributions to Trust unitholders for the foreseeable\nfuture, as previously disclosed in the Trust’s Current Report on Form 8-K\nfiled on November 13, 2019.\n\nAs previously disclosed, the Trust engaged Martindale Consultants, Inc.\n(“Martindale”), a provider of analysis and compliance review services to\nthe oil and gas industry, to perform an independent review of the estimated\nARO in the Moss Adams report that PCEC provided to the Trustee. The Trustee\nalso has engaged an accounting expert to advise the Trustee regarding the\naccruals that PCEC has booked relating to its estimated ARO. As disclosed in\nthe Trust’s Current Report on Form 8-K filed on December 29, 2020,\nMartindale has completed its review of the estimated ARO and on December 21,\n2020, provided its analysis and recommendations to the Trustee. Based on\nMartindale’s recommendations provided in its report to the Trust, as\ndisclosed in the Trust’s Current Report on Form 8-K filed on December 29,\n2020, the Trustee requested that PCEC promptly make several adjustments to its\ncalculations and methods of deducting ARO from the proceeds to which the Trust\nis otherwise entitled pursuant to its Net Profits Interests. PCEC has\nresponded to the Trustee, indicating PCEC’s view that the adjustments would\nviolate applicable contracts and accounting standards, and has therefore\ndeclined to make any adjustments to the estimated ARO calculation based on\nthose requests and the recommendations of the Martindale report. The Trustee\nhas concluded that it has taken all actions reasonably available to it under\nthe Trust’s governing documents in connection with PCEC’s ARO calculation\nand therefore has determined not to take further action at this time.\n\nStatus of the Dissolution of the Trust\n\nAs described in more detail in the Trust’s filings with the SEC, the Trust\nAgreement provides that the Trust will terminate if the annual cash proceeds\nreceived by the Trust from the Net Profits Interests and the Royalty Interest\ntotal less than $2.0 million for each of any two consecutive calendar years.\nBecause of the cumulative net profits deficit—which PCEC contends is the\nresult of the substantial reduction in commodity prices during 2020 due to the\nCOVID-19 pandemic and PCEC’s deduction of estimated ARO beginning in the\nfirst quarter of 2020—the only cash proceeds the Trust has received from\nMarch 2020 has been attributable to the Royalty Interest, other than the\nperiod from August 2022 through February 2023, when the net profits deficit\nwith respect to the Remaining Properties had been eliminated. As a result, the\ntotal proceeds received by the Trust in each of 2020 and 2021 were less than\n$2.0 million. Therefore, the Trust had been expected to terminate by its terms\nat the end of 2021.\n\nEvergreen Arbitration\n\nAs previously disclosed in the Trust’s Current Report on Form 8-K filed on\nDecember 23, 2021, on December 8, 2021, Evergreen Capital Management LLC\n(“Evergreen”) filed an Amended Class Action and Shareholder Derivative\nComplaint alleging a derivative action on behalf of the Trust and against PCEC\nin the Superior Court of the State of California for the County of Los Angeles\n(the “Court”).\n\nOn December 10, 2021, Evergreen filed a motion for temporary restraining order\nand for preliminary injunction, seeking to (1) enjoin the Trustee from\ndissolving the Trust, (2) enjoin PCEC from dissolving the Trust, (3) direct\nPCEC to account for all monies withheld from the Trust on the basis of ARO\ncosts since September 2019, and (4) direct PCEC to place such monies in\nescrow. On December 16, 2021, the Court granted Evergreen’s application for\na temporary restraining order only to the extent of enjoining the dissolution\nof the Trust. Accordingly, the Trust did not dissolve at the end of 2021 and\ncommence the process of selling its assets and winding up its affairs.\n\nOn January 11, 2022, PCEC and Evergreen filed an agreed stipulation to stay\nthe prosecution of Evergreen’s derivative claims pending an arbitration of\nsuch claims. On January 13, 2022, the Court signed an Order dissolving the\nDecember 16, 2021, temporary restraining order and entering a new temporary\nrestraining order to preserve the status quo until a tribunal of three\narbitrators appointed pursuant to the Trust Agreement could rule on any\nrequest by Evergreen for injunctive relief. On April 11, 2022, PCEC notified\nthe Court, at the arbitrators’ request, that the arbitration panel had\nissued an order on April 7, 2022, denying Evergreen’s request for injunctive\nrelief. On April 13, 2022, Evergreen notified the Court that Evergreen had\nfiled a motion for reconsideration with the arbitration panel that same day,\nwhich was denied on May 26, 2022. On August 30, 2022, the arbitration panel\nissued a Partial Final Award dismissing with prejudice Evergreen’s\nderivative claims against PCEC, including Evergreen’s application for an\ninjunction. On December 5, 2023, the California Superior Court confirmed that\nPartial Final Award.\n\nOn June 20, 2022, Evergreen filed an amended pleading in the arbitration,\nadding the Trustee as a party to that proceeding. In early September 2022,\nEvergreen informed the Trustee that it was going to seek a preliminary\ninjunction while its claims against the Trustee were pending. At the request\nof the arbitration panel, the Trustee agreed to take no steps toward the sale\nof the Trust corpus until the Panel decided Evergreen’s application for a\npreliminary injunction. On September 12, 2022, the Trustee filed a motion to\ndismiss Evergreen’s claims against the Trustee. On September 22, 2022,\nEvergreen filed an opposition to the Trustee’s motion to dismiss. On\nSeptember 15, 2022, Evergreen filed a motion to enjoin the Trustee from\nselling the Trust assets or dissolving the Trust during the pendency of the\narbitration. The Trustee and PCEC filed a response in opposition to\nEvergreen’s motion on September 22, 2022. Both motions were heard by the\nPanel on October 24, 2022. On October 31, 2022, the Panel granted the\nTrustee’s motion and dismissed Evergreen’s claims against the Trustee with\nprejudice, which mooted Evergreen’s request for injunctive relief.\n\nEvergreen has sought appeal of each of the judgments. Those appeals were\nconsolidated in the Second Appellate District on November 1, 2023. On March\n20, 2025, the California Court of Appeals heard oral arguments in the appeal,\nand on May 21, 2025, the Court of Appeals issued its decision affirming the\narbitration awards that dismissed Evergreen’s claims with prejudice.\n\nSubject to the outcome of the Trustee’s investigation of the relevant\nallegations in the whistleblower complaint against PCEC described above, and\nsubject to the resolution of the derivative action against the Trustee\ndescribed above, the Trustee plans to move forward with the winding up of the\nTrust in accordance with the provisions of the Trust Agreement, which will\ninclude selling all of the Trust’s assets and distributing the net proceeds\nof the sale to the Trust unitholders after payment, or reasonable provision\nfor payment, of all Trust liabilities, including the establishment of cash\nreserves in such amounts as the Trustee in its discretion deems appropriate\nfor the purpose of making reasonable provision for all claims and obligations\nof the Trust, including any contingent, conditional or unmatured claims and\nobligations, in accordance with the Delaware Statutory Trust Act.\n\nPCEC Arbitration\n\nOn March 31, 2023, PCEC submitted a demand for arbitration against the\nTrustee, as trustee of the Trust, seeking, among other things, (1) an order\ncompelling the Trustee to commence the process of dissolving the Trust\npursuant to the provisions of the Trust Agreement, (2) a declaration that the\nConveyance permits the legal fees and costs that PCEC, as operator, incurred\nin defending the Evergreen litigation and arbitration proceedings described\nabove to be deducted from the proceeds from the Net Profits Interests, and (3)\na declaration that the Trust must repay, with interest, the legal fees and\ncosts that PCEC paid on behalf of the Trust to defend claims against the\nTrustee in the Evergreen proceedings or, alternatively, that PCEC may deduct\nsuch legal fees and costs from the proceeds from the Net Profits Interests.\n\nThe hearing before the arbitration panel was concluded on August 2, 2023, and\non September 28, 2023, as previously disclosed, the arbitration panel issued\nits Partial Final Award, in which the panel found as follows:\n\n\n * The Trustee is not required to immediately commence the marketing and sale of\nthe Trust’s assets;\n\n\n * PCEC is entitled to deduct from the net profits its own legal fees and the\nTrustee’s legal fees paid by PCEC in connection with the Evergreen\nproceedings; and\n\n\n * PCEC is not entitled to reimbursement of such legal fees from the proceeds of\nthe sale of the Trust’s assets.\n\nIn its Final Award issued on October 24, 2023, the arbitration panel set forth\nits finding of fact that pursuant to the termination provisions of the Trust\nAgreement, the triggering event for the dissolution of the Trust occurred on\nJanuary 1, 2022 and the Trust is dissolved, and that the Trustee’s remaining\nduties are as specified in Sections 2.02 (Purpose) and 9.03 (Disposition and\nDistribution of Assets and Properties) of the Trust Agreement.\n\nIn light of the arbitration panel’s finding that the Trustee is not required\nto immediately commence the marketing of the Trust’s assets, the Trustee has\ncontinued to work with PCEC and, until its resignation on July 11, 2025 as\npreviously disclosed in the Trust’s Current Report on Form 8-K filed on July\n17, 2025, the Trust’s prior independent auditor, and since its appointment\non March 16, 2026 as previously disclosed in the Trust’s Current Report on\nForm 8-K filed on March 17, 2026, the Trust’s replacement independent\nauditor, Weaver and Tidwell, L.L.P., to complete the audits of the Trust’s\nfinancial statements for the years ended December 31, 2019 through December\n31, 2025 and the reviews of the Trust’s quarterly financial statements for\nthe years 2023, 2024 and 2025 and to prepare a comprehensive annual report on\nForm 10-K as part of the Trust’s efforts to become current in its filing\nobligations under the Securities Exchange Act of 1934, as amended. The Trust\nexpects to file the comprehensive annual report with the Securities and\nExchange Commission as soon as possible after completion of the audits, at\nwhich point the Trustee expects to commence the marketing and sale process,\nsubject to the resolution of the derivative action against the Trustee\ndescribed above; however, additional delays in the completion and filing of\nthe comprehensive annual report will occur as a result of the Trustee’s\ninvestigation of the relevant allegations in the whistleblower complaint\nagainst PCEC described above. In the meantime, the Trustee will continue to\ncommunicate material information to unitholders via press releases and Forms\n8-K.\n\nMeanwhile, because the Partial Final Award confirmed PCEC’s right to deduct\nfrom the net profits its own legal fees and the Trustee’s legal fees paid by\nPCEC in connection with the Evergreen proceedings, PCEC deducted approximately\n$4.0 million of PCEC legal fees (plus approximately $0.4 million in interest),\nor approximately $3.5 million net to the Trust’s 80% net profits interest,\nunder the net profits interest calculations for September 2023, which\nreflected PCEC legal fees paid through September 30, 2023. Through the end of\nthe Current Month, PCEC had further deducted a total of $2.1 million of PCEC\nlegal fees, including adjustments, or approximately $1.7 million net to the\nTrust’s 80% net profits interest, and a total of $1.8 million of the\nTrustee’s legal fees paid by PCEC in connection with the Evergreen\nproceedings, or approximately $1.5 million net to the Trust’s 80% net\nprofits interest. PCEC has indicated to the Trustee that PCEC continues to\nincur fees and expenses related to Evergreen’s appeal of its loss in the\nlitigation and arbitration and will continue to deduct those amounts under the\nmonthly net profits interest calculation as provided in the Conveyance, which\ncould result in further increases to the net profits deficit for the Developed\nProperties.\n\nThe Trust previously borrowed funds from PCEC sufficient to pay the\napproximately $0.9 million of legal fees of the Trustee incurred in connection\nwith the PCEC arbitration, as well as approximately $59,000 representing the\nTrust’s share of the fees of the arbitration panel.\n\nReplacement of the Trustee\n\nAs previously disclosed, at a special meeting of the unitholders of the Trust\nheld on July 12, 2023 (the “Special Meeting”), a majority of the\nunitholders voted to remove The Bank of New York Mellon Trust Company, N.A. as\ntrustee of the Trust. A successor trustee was not nominated for approval at\nthe Special Meeting. Under Section 6.05 of the Trust Agreement, if a new\ntrustee has not been approved within 60 days after a vote of unitholders\nremoving a trustee, a successor trustee may be appointed by any State or\nFederal District Court having jurisdiction in New Castle County, Delaware,\nupon the application of PCEC, any Trust unitholder, or the Trustee.\n\nOn September 11, 2023, PCEC filed a petition with the Court of Chancery of the\nState of Delaware (the “Court”) seeking to appoint Province, LLC as\nsuccessor trustee.\n\nOn September 12, 2023, unitholders Evergreen Capital Management LLC, Shipyard\nCapital LP, Shipyard Capital Management LLC, Cedar Creek Partners LP, Eriksen\nCapital Management LLC and Walter Keenan (collectively, the “Unitholder\nPetitioners”) jointly filed a petition with the Court seeking to appoint\nBarclay Leib as temporary trustee and as successor trustee as of January 1,\n2024. As Section 6.05 of the Trust Agreement requires that any successor\ntrustee must be a bank or trust company having combined capital, surplus and\nundivided profits of at least $100,000,000, the Unitholder Petitioners\nrequested that the Court modify the Trust Agreement to remove that\nrequirement. Subsequently, the Unitholder Petitioners elected not to proceed\nand filed a stipulated dismissal of their petition on October 17, 2023, which\nwas signed by the Court that day.\n\nOn October 31, 2023, PCEC filed a motion for summary judgment with regard to\nthe appointment of a successor or temporary trustee, and the Trustee filed a\nresponse in opposition to that motion on November 14, 2023. The Court denied\nPCEC’s motion at a hearing held on November 28, 2023. PCEC elected not to\nproceed at this time and filed a stipulated dismissal of its petition, without\nprejudice, on February 27, 2024, which was signed by the Court that day.\n\nThe Trustee is unable to predict when a successor trustee will be appointed.\nUntil that time, the Trustee will remain as trustee of the Trust and will\ncontinue to have the rights and obligations as trustee pursuant to the Trust\nAgreement.\n\nThe Trust has borrowed funds from PCEC sufficient to pay the approximately\n$0.3 million legal fees of the Trustee incurred in connection with the\nproceedings initiated by the Unitholder Petitioners, as well as approximately\n$42,000 representing the Trust’s share of court fees.\n\nProduction Update\n\nPCEC has informed the Trustee that PCEC continues to strategically deploy\ncapital to maintain production within export and transportation constraints\nresulting from the previously disclosed termination of the Phillips 66\npipeline Connection Agreement described in greater detail below. These\nconstraints have led to a curtailment of production at Orcutt, resulting in a\ndecrease of 9,405 Bbls (or 17%) for Orcutt in April 2026, as compared to\nDecember 2022, the last full month of production prior to the termination of\nthe Connection Agreement.\n\nOn December 20, 2024, PCEC announced its plans to terminate oil and gas\nproduction at the West Pico Unit. To begin the termination process, in June\n2026 PCEC submitted an application to the City of Los Angeles for a\nmodification of its conditional use permit (“CUP”) to temporarily use\nworkover rigs to safely and efficiently plug and abandon oil wells on the\nsite, with mandatory termination of all oil and gas operations five years from\napproval of the CUP modification. Termination of production at the West Pico\nUnit, when it occurs, will reduce revenues under the Net Profits Interests,\nwhile the expected termination could adversely affect the amount of proceeds\nthat may be received by the Trust from the sale of the Net Profits Interests.\n\nCancellation of Connection Agreement with Phillips 66\n\nAs previously disclosed, PCEC has informed the Trustee that on September 22,\n2022, PCEC received notice from Phillips 66 of the cancellation of the\nConnection Agreement between PCEC and Phillips 66 with respect to the three\nleases located south of Orcutt in Santa Barbara, California, effective upon\ncompletion of PCEC’s deliveries in December 2022. As a result of the\ncancellation, and the subsequent shutdown of the Santa Maria Refinery on\nJanuary 4, 2023, PCEC no longer has a pipeline interconnection between the\nOrcutt properties and the Santa Maria Refinery. This pipeline was the sole\nmeans by which PCEC transported its crude oil from the Orcutt properties,\nwhich relates to approximately 86% and 91% of the production attributable to\nthe Trust’s interests in 2021 and 2022, respectively.\n\nThe shutdown of the refinery and the pipeline has adversely affected PCEC’s\nfinancial performance, the revenues that may be payable to the Trust, and\nPCEC’s ability to provide loans to the Trust on a timely basis in the full\namounts requested by the Trustee. PCEC previously informed the Trustee that it\nwas able to secure a short-term contract to transport oil from the Orcutt\nproperties commencing on January 4, 2023, albeit at reduced volumes and with a\nhigher differential compared to the terms previously achievable through the\nPhillips 66 Connection Agreement. This contract was terminated at the end of\nJune 2025, as previously disclosed, and the refinery that had taken the oil\nproduced from the Orcutt properties has since been closed. Effective October\n1, 2025, PCEC has made arrangements to sell its oil to other purchasers on a\nshort-term basis. Unlike Phillips 66, which would use its own trucks to\ntransport the oil from PCEC locations, the new purchasers do not have their\nown trucks and therefore PCEC will be required to incur additional costs for\nsuch transportation. Since early 2025, PCEC has incurred additional expenses\nfor transportation from the Orcutt properties and has been deducting from\ngross profits the portion of those expenses attributable to the Trust’s\ninterests in accordance with the terms of the Conveyance. PCEC will continue\nto deduct from gross profits the transportation expenses incurred under the\nnew arrangements for the sale of oil from the Orcutt properties. In addition,\nunlike Phillips 66, which did not reduce the price paid to PCEC for the\ngravity and quality of the crude oil delivered, the purchasers under the\ncurrent arrangements adjust the purchase price paid for the crude oil for the\ngravity, quality, and basic sand and water content of the crude oil delivered.\n\nOverview of Trust Structure\n\nPacific Coast Oil Trust is a Delaware statutory trust formed by PCEC to own\ninterests in certain oil and gas properties in the Santa Maria Basin and the\nLos Angeles Basin in California (the “Underlying Properties”). The\nUnderlying Properties and the Trust’s net profits and royalty interests are\ndescribed in the Trust’s filings with the SEC. As described in the Trust’s\nfilings with the SEC, the amount of any periodic distributions is expected to\nfluctuate, depending on the proceeds received by the Trust as a result of\nactual production volumes, oil and gas prices, development expenses, and the\namount and timing of the Trust’s administrative expenses, among other\nfactors. For additional information on the Trust, please visit\nhttps://royt.q4web.com/home/default.aspx\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Froyt.q4web.com%2Fhome%2Fdefault.aspx&esheet=54562736&newsitemid=20260630006028&lan=en-US&anchor=https%3A%2F%2Froyt.q4web.com%2Fhome%2Fdefault.aspx&index=1&md5=45c2a4f7a82eeee3265b7eca7c0d249d)\n.\n\nCautionary Statement Regarding Forward-Looking Information\n\nThis press release contains statements that are \"forward-looking statements\"\nwithin the meaning of Section 21E of the Securities Exchange Act of 1934, as\namended. All statements contained in this press release, other than statements\nof historical facts, are \"forward-looking statements\" for the purposes of\nthese provisions. These forward-looking statements include estimates of future\nasset retirement obligations, expectations regarding the impact of deductions\nfor such obligations on future distributions to unitholders, estimates of\nfuture total distributions to unitholders, the outcome of the proceedings\nrelating to the appointment of a successor trustee, expectations regarding the\ntiming of the termination of oil and gas production at the West Pico Unit,\nuncertainties regarding transportation of oil from the Orcutt properties and\nthe impact of an inability to transport such oil on future payments to the\nTrust, expectations regarding PCEC’s ability to loan funds to the Trust,\nexpectations regarding future borrowing by the Trust and the impact such\nborrowing may have on any net proceeds available for distribution following a\nsale of the Trust’s assets, future legal fees that may be deducted under the\nmonthly net profits interest calculation, expectations regarding the filing of\nthe Trust’s comprehensive annual report on Form 10-K, statements regarding\nthe expected winding down of the Trust, expectations regarding any proceeds\nthat the Trust may receive from a sale of the Trust’s assets, and the amount\nand date of any anticipated distribution to unitholders. In any case, PCEC’s\ndeductions of its estimated asset retirement obligations will have a material\nadverse effect on distributions to the unitholders and on the trading price of\nthe Trust units and may result in the termination of the Trust. Any\nanticipated distribution is based, in part, on the amount of cash received or\nexpected to be received by the Trust from PCEC with respect to the relevant\nperiod. Any differences in actual cash receipts by the Trust could affect this\ndistributable amount. The amount of such cash received or expected to be\nreceived by the Trust (and its ability to pay distributions) has been in the\npast, and may be in the future, significantly and negatively affected by low\ncommodity prices, which could remain low for an extended period of time, and\npossibly decline further, as a result of a variety of factors that are beyond\nthe control of the Trust and PCEC. Other important factors that could cause\nactual results to differ materially include expenses related to the operation\nof the Underlying Properties, including lease operating expenses, expenses of\nthe Trust, reserves for anticipated future expenses, and difficulties in\nobtaining alternative arrangements for the transportation of oil produced from\nthe Orcutt properties. Statements made in this press release are qualified by\nthe cautionary statements made in this press release. Neither PCEC nor the\nTrustee intends, and neither assumes any obligation, to update any of the\nstatements included in this press release. An investment in units issued by\nPacific Coast Oil Trust is subject to the risks described in the Trust's\nAnnual Report on Form 10‑K for the year ended December 31, 2018, filed with\nthe SEC on March 8, 2019, and if applicable, the Trust’s subsequent\nQuarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Trust's\nAnnual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current\nReports on Form 8-K are available over the Internet at the SEC's website at\nhttp://www.sec.gov\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sec.gov&esheet=54562736&newsitemid=20260630006028&lan=en-US&anchor=http%3A%2F%2Fwww.sec.gov&index=2&md5=f2fab75df39f2320ef544182987ba343)\n.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260630006028/en/\n(https://www.businesswire.com/news/home/20260630006028/en/)\n\nPacific Coast Oil Trust\n\nThe Bank of New York Mellon Trust Company, N.A., as Trustee\n\nSarah Newell\n\n1 (512) 236-6555\n\n601 Travis Street, 16th Floor, Houston, TX 77002\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-06-30T20:15:00.254498563Z","server_sent_at_ms":1782850500254},"received_at":"2026-06-30T20:15:00.423Z","source_url":"https://www.businesswire.com/news/home/20260630006028/en/"},"analysis":{"id":"66436","press_release_id":"77178","analysis_json":{"industry":{"label":"Oil, Gas & Consumable Fuels","sector":"Energy"},"redFlags":["No distribution announced for April 2026","Likelihood of future distributions described as extremely remote","Trust owes PCEC approximately $13.6 million","New derivative lawsuit filed against Trustee in May 2026","Trust is in the process of dissolution","Production at Orcutt curtailed by 17%"],"eventType":"operations_update","narrative":"Pacific Coast Oil Trust announced no cash distribution for April 2026, citing that proceeds are insufficient to cover administrative expenses and the $13.6 million debt owed to sponsor PCEC, making future distributions extremely remote.\n\nThe Trustee continues to work on winding up the Trust, pending the completion of delayed financial audits and the resolution of a new derivative lawsuit filed in May 2026 alleging breach of fiduciary duty regarding asset retirement obligation deductions.\n\nOperations faced headwinds with Orcutt production curtailed by 17% due to pipeline constraints and PCEC announcing plans to terminate production at the West Pico Unit.","sentiment":"bearish","agentHooks":{"shouldPost":true,"suggestedAngle":"Zero distribution, mounting debt, and new litigation confirm the Trust's wind-down status remains troubled."},"keyFigures":{"customDimensions":{"debt_to_pcec":"$13.6 million","monthly_shortfall":"$83,000","aro_developed_adjustment":"$470,000","aro_remaining_adjustment":"$143,000","orcutt_production_decline":"17%","developed_properties_revenue":"$3.0 million","remaining_properties_revenue":"$1.3 million","remaining_properties_net_payable":"$65,000","developed_properties_operating_income":"$1,304,000","developed_properties_net_profits_deficit":"$11.0 million"}},"quotedText":"the likelihood of distributions to the unitholders in the foreseeable future is extremely remote.","namedEntities":{"people":[{"name":"Brendan Potyondy","role":"Plaintiff / Former Employee"},{"name":"Sarah Newell","role":"Contact"}],"products":[],"companies":[{"name":"Pacific Coast Energy Company LP","relationship":"Sponsor / Operator"},{"name":"The Bank of New York Mellon Trust Company, N.A.","relationship":"Trustee"},{"name":"Shipyard Capital, LP","relationship":"Plaintiff"},{"name":"Cedar Creek Partners","relationship":"Plaintiff"},{"name":"Walter Keenan","relationship":"Plaintiff"},{"name":"Cromwell Capital, LLC","relationship":"Plaintiff"},{"name":"Timothy Eriksen","relationship":"Plaintiff"},{"name":"Eriksen Family, LLC","relationship":"Plaintiff"},{"name":"Revi Ramesh Desai","relationship":"Plaintiff"},{"name":"Evergreen Capital Management LLC","relationship":"Litigant"},{"name":"Phillips 66","relationship":"Counterparty"},{"name":"Moss Adams LLP","relationship":"Accounting Firm"},{"name":"Cornerstone Engineering, Inc.","relationship":"Consultant"},{"name":"Weaver and Tidwell, L.L.P.","relationship":"Independent Auditor"}],"dollarAmounts":[{"amount":"$3.0 million","context":"Developed Properties revenues"},{"amount":"$1.7 million","context":"Developed Properties lease operating expenses"},{"amount":"$1.3 million","context":"Remaining Properties revenues"},{"amount":"$0.6 million","context":"Remaining Properties lease operating expenses"},{"amount":"$119,000","context":"Monthly operating and services fee to PCEC"},{"amount":"$29,000","context":"Trust general and administrative expenses"},{"amount":"$83,000","context":"Monthly shortfall"},{"amount":"$13.6 million","context":"Amount owed to PCEC"},{"amount":"$1 million","context":"Letter of credit (fully drawn)"}]},"materialImpact":{"score":3,"reasoning":"The Trust announced no distribution for April 2026 and stated the likelihood of future distributions is extremely remote due to insufficient funds covering expenses and a significant debt balance to the sponsor. Additionally, the disclosure of a new derivative lawsuit against the Trustee and the ongoing winding-down process adds uncertainty."},"tickerRelevance":{"others":[],"primary":"ROYTL"},"globalImportance":15,"audienceRelevance":15,"eventTypeSecondary":["legal_litigation","restructuring"],"importanceComponents":{"tickerTier":"micro-cap","eventGravity":"monthly_update_no_distribution","litigationRisk":"new_derivative_suit"}},"event_type":"operations_update","event_type_secondary":["legal_litigation","restructuring"],"sentiment":"bearish","material_impact_score":3,"narrative":"Pacific Coast Oil Trust announced no cash distribution for April 2026, citing that proceeds are insufficient to cover administrative expenses and the $13.6 million debt owed to sponsor PCEC, making future distributions extremely remote.\n\nThe Trustee continues to work on winding up the Trust, pending the completion of delayed financial audits and the resolution of a new derivative lawsuit filed in May 2026 alleging breach of fiduciary duty regarding asset retirement obligation deductions.\n\nOperations faced headwinds with Orcutt production curtailed by 17% due to pipeline constraints and PCEC announcing plans to terminate production at the West Pico Unit.","key_figures":{"customDimensions":{"debt_to_pcec":"$13.6 million","monthly_shortfall":"$83,000","aro_developed_adjustment":"$470,000","aro_remaining_adjustment":"$143,000","orcutt_production_decline":"17%","developed_properties_revenue":"$3.0 million","remaining_properties_revenue":"$1.3 million","remaining_properties_net_payable":"$65,000","developed_properties_operating_income":"$1,304,000","developed_properties_net_profits_deficit":"$11.0 million"}},"named_entities":{"people":[{"name":"Brendan Potyondy","role":"Plaintiff / Former Employee"},{"name":"Sarah Newell","role":"Contact"}],"products":[],"companies":[{"name":"Pacific Coast Energy Company LP","relationship":"Sponsor / Operator"},{"name":"The Bank of New York Mellon Trust Company, N.A.","relationship":"Trustee"},{"name":"Shipyard Capital, LP","relationship":"Plaintiff"},{"name":"Cedar Creek Partners","relationship":"Plaintiff"},{"name":"Walter Keenan","relationship":"Plaintiff"},{"name":"Cromwell Capital, LLC","relationship":"Plaintiff"},{"name":"Timothy Eriksen","relationship":"Plaintiff"},{"name":"Eriksen Family, LLC","relationship":"Plaintiff"},{"name":"Revi Ramesh Desai","relationship":"Plaintiff"},{"name":"Evergreen Capital Management LLC","relationship":"Litigant"},{"name":"Phillips 66","relationship":"Counterparty"},{"name":"Moss Adams LLP","relationship":"Accounting Firm"},{"name":"Cornerstone Engineering, Inc.","relationship":"Consultant"},{"name":"Weaver and Tidwell, L.L.P.","relationship":"Independent Auditor"}],"dollarAmounts":[{"amount":"$3.0 million","context":"Developed Properties revenues"},{"amount":"$1.7 million","context":"Developed Properties lease operating expenses"},{"amount":"$1.3 million","context":"Remaining Properties revenues"},{"amount":"$0.6 million","context":"Remaining Properties lease operating expenses"},{"amount":"$119,000","context":"Monthly operating and services fee to PCEC"},{"amount":"$29,000","context":"Trust general and administrative expenses"},{"amount":"$83,000","context":"Monthly shortfall"},{"amount":"$13.6 million","context":"Amount owed to PCEC"},{"amount":"$1 million","context":"Letter of credit (fully drawn)"}]},"model_name":"qwen3_6_27b_awq","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-06-30T20:22:03.968Z","global_importance":15,"audience_relevance":15,"importance_components":{"tickerTier":"micro-cap","eventGravity":"monthly_update_no_distribution","litigationRisk":"new_derivative_suit"}},"durationMs":275289,"modelName":"george-droid-qwen-72b"}}