Santa Fe Energy Trust May Have Been Overpaid
AUSTIN, Texas - Santa Fe Energy Trust (NYSE:SFF) says that in connection with a review of properties in which the Trust has an interest in preparation for a sale of those interests, the Trustee has been informed by Devon Energy Corporation that Devon believes it may have overpaid the Trust during 2006 and prior years for net profits royalties. Although Unitholders would not be required to return any overpayments they may have received, any such overpayments could, depending on the facts, reduce future royalty payments, and could affect the amounts the Trust would realize upon the sale of its net profit royalties upon the sale of the properties.
Devon has cautioned the Trust that Devon is still in the process of attempting to determine whether it believes it actually overpaid the Trust, and if so, by how much. Devon has informed the Trustee that at this time no reliable estimate of the amount of the potential overpayments, if any, can be made.
Based on this preliminary information, the Trustee has determined to retain an independent consulting firm to review Devonís records regarding the net profits royalties. Because of the number of properties in which the Trust has an interest, the Trustee anticipates that an independent review of Devonís records will take a significant amount of time. As a result, it appears unlikely that the Trust will be able to file its Annual Report on Form 10-K for the year ended 2006 on a timely basis.
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