Mesa Royalty Trust Announces Trust Income for June 2021

HOUSTON – (COMMERCIAL THREAD) – Mesa Royalty Trust (the “Trust” (NYSE: MTR) today announced the distribution of the Trust’s income for the month of June 2021. Unitholders of record on June 30, 2021 will receive distributions of a amount of $ 0.017151226 per unit, payable July 30, 2021. The Trust received $ 33,859, entirely from the Colorado portion of the Trust’s San Juan Basin properties operated by SIMCOE LLC, a subsidiary of IKAV Energy Inc. (the “Operator”) No income was received in June 2021 from any other direct interest owner.

The Trust was incorporated to hold an overriding royalty on the net proceeds attributable to certain producing oil and gas properties located in the Hugoton field in Kansas and the San Juan Basin fields in New Mexico and Colorado. As described in the Trust’s public documents, the amount of monthly distributions is expected to fluctuate from month to month, depending on the proceeds, if any, received by the Trust as a result of production, oil prices. and natural gas and the amount of the administrative costs of the Trust, among other factors. On February 28, 2020, BP Amoco Company (“BP”) completed the sale of all of its interest in the San Juan — Colorado Basin Properties to the operator. Following the operator’s acquisition of BP’s stake in the San Juan — Colorado Basin Properties, there was a transition period to transfer historical information, knowledge and processes from one owner to the next. ‘other. The Operator has informed the Trustee that the amount paid to the Trust in the month of June 2021 is subject to further adjustments in future periods for certain expenses which the Operator is entitled to deduct by virtue of the transfer. The operator would be expected to recover these expense amounts by withholding some or all of the net proceeds that would otherwise be payable to the trust in future periods. Any reduction in the income paid to the Trust for these properties may significantly reduce or eliminate distributions to Unitholders of the Trust in future periods.

The proceeds reported by the working interest owners for a month are generally not indicative of the net proceeds that will be received by the Trust in future periods. As more fully described in Forms 10-K and 10-Q filed by the Trust, the production and development costs of the royalty interest have resulted in substantial accumulated excess production costs, which will reduce the distribution of the Trust and, at certain times, may result in no distributions. The amount of proceeds, if any, received or anticipated by the Trust (and its ability to make distributions to Unitholders) has been and will continue to be directly affected by, among other things, industry volatility and income and expenses declared to the Trust by owners of direct interest. Any additional charges and adjustments, among other things, will reduce the proceeds of the Trust, which will reduce the amount of cash available for distribution to Unitholders and, at certain times, may result in no distributions to Unitholders.

This press release contains forward-looking statements. No assurance can be given that the expectations contained in this press release will prove to be correct. The direct interest owners alone control historical operating data and are responsible for the receipt and payment of funds related to the royalty properties and payments to the Trust for related royalties. The Trustee cannot guarantee that any errors, adjustments or expenses accrued by the owners of direct interests, whether historical or future, will not affect future royalty income and distributions of the Trust. Other important factors that could cause these statements to differ materially include delays in the actual results of drilling operations, risks inherent in drilling and producing oil and gas properties, declines in commodity prices and ‘other factors described in the Trust’s Form 10-K for the fiscal year ended December 31, 2020 under the heading “Part I, Section 1A. Risk Factors. “Statements made in this press release are qualified by the cautionary statements made in those risk factors. The Trust does not intend and assumes no obligation to update any statements included in this press release Each Unitholder should consult their own tax advisor with respect to their particular circumstances.

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