UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

 Date of Report (Date of earliest event reported)  
July 31, 2018

 NORTH EUROPEAN OIL ROYALTY TRUST 
(Exact name of Registrant as specified in its charter)

Commission File No. 1-8245

 Delaware 
(State of organization)

 22-2084119 
IRS Employer I.D. No.

43 West Front Street, Suite 19A, Red Bank, NJ 07701
(Address of principal executive offices)

 (732) 741-4008 
(Registrant's telephone number including area code)

 Not Applicable 
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act
   (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
   (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
   Exchange Act 17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
   Exchange Act (17 CFR 240.13e-4(c))

 

Item 2.02.    Results of Operations and Financial Condition.

On July 31, 2018, North European Oil Royalty Trust issued a press release via PR Newswire announcing the Trust's distribution for the third quarter of fiscal 2018. Furnished herewith is a copy of the press release, which is incorporated by reference herein.


Item 9.01.    Financial Statements and Exhibits.

(c) Exhibits

The following exhibit is furnished herewith:

Exhibit 99.    A press release dated July 31, 2018 and disseminated through PR Newswire announcing the distribution for North European Oil Royalty Trust for the third quarter of fiscal 2018.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


NORTH EUROPEAN OIL ROYALTY TRUST
(Registrant)


By:  /s/ John R. Van Kirk
   John R. Van Kirk
     Managing Director

August 1, 2018

Exhibit 99

PR NEWSWIRE

NORTH EUROPEAN OIL ROYALTY TRUST
ANNOUNCES THE DISTRIBUTION
FOR THE THIRD QUARTER OF FISCAL 2018

Red Bank, N.J.  July 31, 2018  -  The Trustees of North European Oil Royalty Trust (NYSE-NRT) announced today a quarterly distribution of $0.19 per unit for the third quarter of fiscal 2018, payable on August 29, 2018 to holders of record on August 17, 2018. Natural gas sold during the second calendar quarter of 2018 is the primary source of royalty income on which the August 2018 distribution is based.

John R. Van Kirk, Managing Director, reported that this year's quarterly distribution of $0.19 per unit is 5.00%, or $0.01 per unit, lower than the distribution of $0.20 per unit for the third quarter of fiscal 2017. Additional details will be available in the earnings press release scheduled for publication on or about August 15, 2018.

The Trust receives nearly all of its royalties under two royalty agreements. The Mobil Agreement, which is the higher royalty rate agreement, covers gas sales from the western half of the Oldenburg concession. The OEG Agreement, which is the lower royalty rate agreement, covers gas sales from the entire Oldenburg concession. The factors determining the amount of gas royalties payable under the two agreements from the preceding calendar quarter are shown in the table below comparing the second calendar quarters of 2018 and 2017. A significant portion of the reduction in gas sales occurred as a result of the unscheduled shutdown of the Grossenkneten desulfurization plant from May 19 to June 5, 2018. Additionally, one of the two tracks at the sulfinol plants will remain shut down reducing sour gas throughput by 40% until the end of August. Further details will be included in the Trust's 10-Q, which will be available through the SEC or on the Trust's website, www.neort.com, on or about August 30, 2018.

Quarterly Gas Data Providing Basis for Fiscal Quarter Royalties
2nd Calendar
Quarter Ended
6/30/2018
2nd Calendar
Quarter Ended
6/30/2017
Percentage
Change
Mobil Agreement
Gas Sales (Bcf) 1 3.593 5.500 -34.67
Gas Prices2 (Ecents/Kwh)3 1.9141 1.7406 +9.97%
Average Exchange Rate4 1.1705 1.1175 +4.74%
Gas Royalties $923,710 $1,220,647 -24.33%
 
OEG Agreement
Gas Sales (Bcf) 11.712 17.829 -34.31%
Gas Prices (Ecents/Kwh) 1.9520 1.7750 +9.97%
Average Exchange Rate 1.1705 1.1175 +4.74%
Gas Royalties $350,867 $517,750 -32.23%
Footnotes
1. Billion cubic feet
2. Gas prices derived from February-April period
3. Euro cents per kilowatt hour
4. Based on average Euro/dollar exchange rates of cumulative royalty transfers

The table below shows an estimate of the amount of royalties anticipated to be received in the fourth quarter of fiscal 2018 based on the actual amount of royalties that were payable to the Trust for the second calendar quarter of 2018. Amounts in dollars are based on the current exchange rate of 1.168185. Actual royalty income in dollars is valued based on exchange rates on the day funds are transferred. The August and September estimates below include a negative adjustment from the prior quarter of Euros 440,789. This adjustment reflects the inclusion of funds that would have been received under the Mobil sulfur royalty agreement for the second quarter of 2018.

Estimated Combined Royalties Anticipated in Combined Royalties in Euros Combined Royalties in Dollars Dollar Royalties in Cents per Unit
August
Euros 0
 $0 
$0.0000
September
Euros 327,613
 $382,713 
$0.0416
October
Euros 384,201
 $448,818 
$0.0488

The cumulative 12-month distribution, which includes the August 2018 distribution and the three prior quarterly distributions, is $0.77 per unit. This 12-month cumulative distribution is 16.67% or $0.11 per unit higher than the prior 12-month distribution of $0.66 per unit. The Trust makes quarterly distributions to unit owners during the months of February, May, August and November.

Contact -- John R. Van Kirk, Managing Director, telephone: (732) 741-4008, email: jvankirk@neort.com. The Trust's press releases and other pertinent information are available on the Trust's website: www.neort.com.