Pacific Coast Oil Trust

Pacific Coast Oil Trust is a statutory trust formed in January 2012 under the Delaware Statutory Trust Act. The Trust was created to acquire and hold net profits and royalty interests in specific oil and natural gas properties located in California for the benefit of its unitholders. On May 8, 2012, Pacific Coast Energy Company LP (PCEC) conveyed to the Trust net profits interests and a royalty interest, collectively known as the "Conveyed Interests." These interests are in certain onshore oil and natural gas properties in California, referred to as the "Underlying Properties." The Conveyed Interests represent undivided interests in these properties and were transferred concurrently with the Trust's initial public offering of beneficial interest units in May 2012. The Conveyed Interests are passive, meaning neither the Trust nor its Trustee has any control over, or responsibility for, the operational costs of the Underlying Properties. The Underlying Properties consist of two parts: the "Developed Properties," which are the proved developed reserves as of December 31, 2011, and the "Remaining Properties," which encompass all other development potential. Production from the Developed Properties attributable to the Trust comes from existing wells that generally require limited additional capital expenditures. In contrast, production from the Remaining Properties attributable to the Trust requires capital expenditures for drilling new wells and installing infrastructure.