<SEC-DOCUMENT>0001104659-25-100124.txt : 20251016
<SEC-HEADER>0001104659-25-100124.hdr.sgml : 20251016
<ACCEPTANCE-DATETIME>20251016165417
ACCESSION NUMBER:		0001104659-25-100124
CONFORMED SUBMISSION TYPE:	SCHEDULE 13D/A
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20251016
DATE AS OF CHANGE:		20251016

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PERMIAN BASIN ROYALTY TRUST
		CENTRAL INDEX KEY:			0000319654
		STANDARD INDUSTRIAL CLASSIFICATION:	OIL ROYALTY TRADERS [6792]
		ORGANIZATION NAME:           	01 Energy & Transportation
		EIN:				756280532
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SCHEDULE 13D/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	005-34075
		FILM NUMBER:		251398214

	BUSINESS ADDRESS:	
		STREET 1:		C/O ARGENT TRUST COMPANY
		STREET 2:		3838 OAK LAWN AVE., SUITE 1720
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75219-4518
		BUSINESS PHONE:		9729191360

	MAIL ADDRESS:	
		STREET 1:		C/O ARGENT TRUST COMPANY
		STREET 2:		3838 OAK LAWN AVE., SUITE 1720
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75219-4518

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SoftVest Advisors, LLC
		CENTRAL INDEX KEY:			0001803391
		ORGANIZATION NAME:           	
		EIN:				832704861
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SCHEDULE 13D/A

	BUSINESS ADDRESS:	
		STREET 1:		400 PINE STREET
		STREET 2:		SUITE 1010
		CITY:			ABILENE
		STATE:			TX
		ZIP:			79601
		BUSINESS PHONE:		325-677-6177

	MAIL ADDRESS:	
		STREET 1:		400 PINE STREET
		STREET 2:		SUITE 1010
		CITY:			ABILENE
		STATE:			TX
		ZIP:			79601
</SEC-HEADER>
<DOCUMENT>
<TYPE>SCHEDULE 13D/A
<SEQUENCE>1
<FILENAME>primary_doc.xml
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      <amendmentNo>2</amendmentNo>
      <securitiesClassTitle>Units of Beneficial Interest</securitiesClassTitle>
      <dateOfEvent>10/15/2025</dateOfEvent>
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          <com:street2>3838 OAK LAWN AVE., SUITE 1720</com:street2>
          <com:city>DALLAS</com:city>
          <com:stateOrCountry>TX</com:stateOrCountry>
          <com:zipCode>75219-4518</com:zipCode>
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          <personName>Eric L. Oliver</personName>
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            <com:street1>c/o SoftVest Advisors, LLC</com:street1>
            <com:street2>400 Pine Street, Suite 1010</com:street2>
            <com:city>Abilene</com:city>
            <com:stateOrCountry>TX</com:stateOrCountry>
            <com:zipCode>79601</com:zipCode>
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      <reportingPersonInfo>
        <reportingPersonNoCIK>Y</reportingPersonNoCIK>
        <reportingPersonName>SoftVest GP I, LLC</reportingPersonName>
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        <percentOfClass>13.3</percentOfClass>
        <typeOfReportingPerson>OO</typeOfReportingPerson>
        <commentContent>Percentage based on 46,608,796 Units of Beneficial Interest (as defined below) of the Issuer (as defined below) outstanding as reported in the Issuer's Form 10-Q filed with the SEC on August 13, 2025. SoftVest GP I, LLC is the general partner of, and may be deemed to beneficially own securities owned by, SoftVest, L.P.</commentContent>
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      <reportingPersonInfo>
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        <reportingPersonName>SoftVest, L.P.</reportingPersonName>
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        <percentOfClass>13.3</percentOfClass>
        <typeOfReportingPerson>PN</typeOfReportingPerson>
        <commentContent>Percentage based on 46,608,796 Units of Beneficial Interest (as defined below) of the Issuer (as defined below) outstanding as reported in the Issuer's Form 10-Q filed with the SEC on August 13, 2025.</commentContent>
      </reportingPersonInfo>
      <reportingPersonInfo>
        <reportingPersonNoCIK>Y</reportingPersonNoCIK>
        <reportingPersonName>Eric L. Oliver</reportingPersonName>
        <fundType>AF</fundType>
        <fundType>PF</fundType>
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        <percentOfClass>13.3</percentOfClass>
        <typeOfReportingPerson>IN</typeOfReportingPerson>
        <commentContent>Excludes 17,000 Units of Beneficial Interest held by family members of and partnerships for the benefit of the family of Eric L. Oliver. Mr. Oliver disclaims beneficial ownership of any such Units of Beneficial Ownership except to the extent of any pecuniary interest therein.

Percentage based on 46,608,796 Units of Beneficial Interest (as defined below) of the Issuer (as defined below) outstanding as reported in the Issuer's Form 10-Q filed with the SEC on August 13, 2025.</commentContent>
      </reportingPersonInfo>
    </reportingPersons>
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      <item1>
        <securityTitle>Units of Beneficial Interest</securityTitle>
        <issuerName>Permian Basin Royalty Trust</issuerName>
        <issuerPrincipalAddress>
          <com:street1>C/O ARGENT TRUST COMPANY</com:street1>
          <com:street2>3838 OAK LAWN AVE., SUITE 1720</com:street2>
          <com:city>DALLAS</com:city>
          <com:stateOrCountry>TX</com:stateOrCountry>
          <com:zipCode>75219-4518</com:zipCode>
        </issuerPrincipalAddress>
        <commentText>This Amendment No. 2 to the Schedule 13D (this "Amendment No. 2") relates to the units of beneficial interest ("Units") of Permian Basin Royalty Trust (the "Trust") and amends the Schedule 13D filed on October 10, 2025 (as previously amended, the "Original Schedule 13D" and together with this amendment, the "Schedule 13D"). Capitalized terms used and not defined in this Amendment No.2 have the meanings set forth in the Original Schedule 13D.

This Amendment No.2 is being filed by the Reporting Persons to amend Item 4 and Item 7 as follows:</commentText>
      </item1>
      <item4>
        <transactionPurpose>Item 4 of the Original Schedule 13D is amended by adding the following:

On October 15, 2025, the Reporting Persons filed a preliminary proxy statement with the Securities and Exchange Commission (the "SEC") with respect to the Special Meeting. Exhibit 3 contains certain excerpts of the preliminary proxy that are incorporated by reference herein.

Given his expertise and qualifications, Mr. Oliver may, if the Proposed Conversion is effected, stand for election to Newco's board of directors.</transactionPurpose>
      </item4>
      <item7>
        <filedExhibits>Item 7 of the Original Schedule 13D is amended by adding the following:

(3) Excerpt from Preliminary Proxy Statement, dated October 15, 2025</filedExhibits>
      </item7>
    </items1To7>
    <signatureInfo>
      <signaturePerson>
        <signatureReportingPerson>SoftVest Advisors, LLC</signatureReportingPerson>
        <signatureDetails>
          <signature>/s/ Eric Oliver</signature>
          <title>Eric Oliver/President and Managing Member</title>
          <date>10/16/2025</date>
        </signatureDetails>
      </signaturePerson>
      <signaturePerson>
        <signatureReportingPerson>SoftVest GP I, LLC</signatureReportingPerson>
        <signatureDetails>
          <signature>/s/ Eric Oliver</signature>
          <title>Eric Oliver/President and Managing Member</title>
          <date>10/16/2025</date>
        </signatureDetails>
      </signaturePerson>
      <signaturePerson>
        <signatureReportingPerson>SoftVest, L.P.</signatureReportingPerson>
        <signatureDetails>
          <signature>By: SoftVest GP I, LLC its general partner, /s/ Eric Oliver</signature>
          <title>Eric Oliver/President and Managing Member</title>
          <date>10/16/2025</date>
        </signatureDetails>
      </signaturePerson>
      <signaturePerson>
        <signatureReportingPerson>Eric L. Oliver</signatureReportingPerson>
        <signatureDetails>
          <signature>/s/ Eric Oliver</signature>
          <title>Eric Oliver</title>
          <date>10/16/2025</date>
        </signatureDetails>
      </signaturePerson>
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<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>2
<FILENAME>tm2528915d1_ex3.htm
<DESCRIPTION>EXHIBIT 3
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="text-align: right; margin: 0"><B>Exhibit 3</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>Excerpt from Preliminary Proxy Statement</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[See attached]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 1 -->
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BACKGROUND AND REASONS FOR THE SOLICITATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">Since acquiring
Units in 2020, from time to time the Participants have engaged with the Trustee, investors and other industry participants (including
Blackbeard Operating, LLC (&ldquo;<U>Blackbeard</U>&rdquo;), the operator of the properties in the Waddell Ranch, in Crane County, Texas,
in which the Trust holds a 75% net overriding royalty) </FONT>to better understand current developments, the economic potential of the
Waddell Ranch properties and opportunities to create value for Unitholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Participants now believe, based on their work,
that the current structure of the Trust&rsquo;s Royalties on the Waddell Ranch properties is sub-optimal for Unitholders:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The Royalties held by the Trust on the Waddell
Ranch properties are burdened by the accrued capital and operating costs associated with oil and gas operations, including the costs of
drilling, completion and abandonment (&ldquo;<U>Production Costs</U>&rdquo;), in addition to traditional royalty deductions for post-production
marketing costs (&ldquo;<U>Post-Production Costs</U>&rdquo;).</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
technology utilized to develop oil and gas formations in the Permian Basin where the Waddell Ranch is located has changed significantly
since 1980, when the Trust was initially formed. In particular, the advent of horizontal drilling and hydraulic fracturing technology
&ndash; developments not anticipated by the Settlor &ndash; has unlocked new opportunities for oil and gas production, while significantly
increasing the cost and complexity associated with drilling new wells. This is reflected in the development of the Waddell Ranch properties,
where Blackbeard has drilled approximately 265 horizontal wells and 428 vertical wells since 2020. Based on information in the 2024 Annual
Report and the Trust&rsquo;s Annual Report on Form&nbsp;10-K for the fiscal year ended December&nbsp;31, 2023, there has been both a
significant increase in (i)&nbsp;the Production Costs incurred to develop the Waddell Ranch properties &ndash; from $28,405,719 in 2019
to $224,970,682 in 2024, and (ii)&nbsp;gross proceeds of sales from the Waddell Ranch properties &ndash; from $39,425,195 in 2019 to
$242,067,954 in 2024.<FONT STYLE="font-size: 10pt"><SUP>1</SUP></FONT></FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Despite the significant increase in revenue from
production between 2019 and 2024, deductions for accrued Production Costs negatively impacted upside in the form of distributions to the
Trust for the Royalties from the Waddell Ranch properties, which were $8,264,606 in 2019 (representing approximately 21.0% of gross proceeds)
and $12,822,955 in 2024 (representing 5.3% of gross proceeds).</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">o</FONT></TD><TD STYLE="text-align: justify">Under the Trust&rsquo;s Royalty conveyance documents, if Production Costs and Post-Production Costs exceed
revenues for the Waddell Ranch properties or the other Royalty properties in Texas, such excess costs must be recovered, with accrued
interest, from future net proceeds and cannot reduce net proceeds from the other conveyance. During such &ldquo;excess cost deficit&rdquo;
periods, the Trust receives no distributions and is instead forced to effectively borrow money from Blackbeard at prevailing short-term
Treasury rates that must be offset from future production and revenue otherwise paid to the Trust. Unitholders assume substantial economic
risk under such an arrangement as the return on horizontally fractured wells is highly dependent on crude oil prices in the first few
months of production. Unlike Blackbeard, the Trust, as currently constructed, is not permitted to hedge this risk.&nbsp; This creates
a potential misalignment in incentives between Blackbeard and Unitholders and increases risk that these investments generate inadequate,
or potentially negative, returns.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">o</FONT></TD><TD STYLE="text-align: justify">The Waddell Ranch properties have not contributed any Royalty income to the Trust since October&nbsp;2024
and remain in a deficit position of approximately $28 million as of June&nbsp;30, 2025. The Participants believe that a traditional royalty
that is free from deduction for all Production Costs and subject to only limited Post-Production Costs would have generated steady, predictable
distributable cash flow during this period.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>1</SUP></FONT></TD><TD STYLE="text-align: justify">Note that, per the 2024 Annual Report, oil and gas production for the calendar year 2024 reported above
is associated with actual production for 11 months from November 2023 through September 2024 for the Waddell Ranch properties because
as of the filing of the 2024 Annual Report, Blackbeard had refused to provide the Trustee with information necessary to calculate the
net proceeds as of the New York Stock Exchange notification date for the monthly distribution beginning in May 2024.</TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">o</FONT></TD><TD STYLE="text-align: justify">Blackbeard has invested almost $500 million of cash flow (more than $10.00 per Unit if the Participants&rsquo;
internally modeled capital expenditures through September&nbsp;2025 are included) into developing the Waddell Ranch properties since becoming
operator.&nbsp; Due to the restrictive nature of the Trust Indenture, Unitholders have not been informed as to how this money is being
invested &ndash; returns, break-evens, projections and other factors.&nbsp; The Participants believe that Unitholders should be informed
about how their money is being invested. Through these capital expenditures, Unitholders have, in effect, financially supported Blackbeard&rsquo;s
efforts in better understanding the Waddell Ranch properties.&nbsp; The Participants believe these lessons learned likely have similar
application to properties on the Central Basin Platform and that Unitholders should benefit financially if Blackbeard&rsquo;s operations
expand into territories having similar geologic characteristics.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">As royalty trust owners, the Participants know
most Unitholders bought an interest in the Trust with the expectation of consistent cash flow (distributions).&nbsp; Due to the nature
of the Royalties on the Waddell Ranch properties, which are fully burdened by Production Costs, distributions have been limited.&nbsp;
We believe these Production Costs may continue to be elevated for the foreseeable future and as a result, under the current Trust structure,
there will continue to be limited, if any, distributions to the Trust. In that regard, we know that Blackbeard currently has 34 permits
outstanding for new wells approved by the railroad commission that have not yet been drilled.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In addition, we note that the Royalties held
by the Trust on the Waddell Ranch properties do not uniformly burden the lands within the Waddell Ranch, but rather only burden certain
tracts within those lands. The Participants believe that this limitation combined with the unusual structure of the Royalty has potentially
suppressed additional development on the Waddell Ranch properties.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In light of the foregoing, the Participants believe
that Unitholders would benefit from the ability to effect various transactions that are currently restricted activities under the Trust
Indenture &ndash; activities which could also be better pursued if the Trust was converted into a publicly traded corporation or limited
liability company (the &ldquo;<U>Proposed Conversion</U>&rdquo;). The Proposed Conversion would be effected by means of (a)&nbsp;the transfer
of the Trust&rsquo;s assets to a newly-formed corporation or limited liability company (&ldquo;<U>Newco</U>&rdquo;), (b)&nbsp;the subsequent
distribution of Newco&rsquo;s equity interests to Unitholders and (c)&nbsp;the termination of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Proposed Conversion would (a)&nbsp;allow management
by a board of directors or other governing body operating under modern governance principles and (b)&nbsp;such governing body, with the
support of professional management, could facilitate Newco&rsquo;s ability to explore value-maximizing transactions. These potential transactions
could include, among other things (collectively, the &ldquo;<U>Potential Strategic Transactions</U>&rdquo;):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">restructuring the Trust&rsquo;s existing net
overriding royalty interest (which is burdened by Production Costs) in certain tracts held by Blackbeard within the Waddell Ranch into
a traditional oil and gas mineral royalty that is not burdened by Production Costs covering 100% of the tracts owned by Blackbeard within
the Waddell Ranch, and potentially seeking an interest in royalties generated by the surface estate associated with the Waddell Ranch
properties &ndash; an asset mix that would provide more consistent cash flow over time. We believe that Blackbeard will be incentivized
to exchange the current Royalty held by the Trust for a more industry-standard royalty structure;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">evaluating and pursuing what we believe are ample
opportunities to invest in similar properties in the region;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">seeking partnership opportunities with Blackbeard
to participate in the monetization of the knowledge and expertise gained by Blackbeard in operating the Trust&rsquo;s properties; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">implementing a hedging strategy, which would
better align the economic incentives of Blackbeard and Unitholders.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">We believe both
the Proposed Conversion and the Potential Strategic Transactions are not permitted under the Trust Indenture and could not be effected
without amendments to the Trust Indenture, which requires a super-majority vote. See information under the heading &ldquo;BACKGROUND ON
THE TRUST&mdash;Super-Majority Voting Requirements under Trust Indenture&rdquo; above. The Participants have been advised that achieving
such a vote is practically impossible given the disperse ownership of Unitholders and historical lack of participation by Unitholders
at special meetings. By way of illustration, the last special meeting of Unitholders, held on May&nbsp;4, 2022, garnered a quorum of approximately
54.8% of the outstanding Units after a solicitation period of over three months. In fact, the special meeting, which was initially scheduled
for April&nbsp;5, 2022, had to be adjourned due to lack of a requisite quorum. Therefore, the Participants believe that the only pragmatic
path to effect the Proposed Conversion and Potential Strategic Transactions is by means of the Indenture Reformation</FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Even if the Proposed Conversion is not effected,
we believe that effecting the Indenture Reformation will give the Trustee and Unitholders the flexibility to approve Potential Strategic
Transactions and other transactions that would otherwise require super-majority voting, such as selling the Royalties to a third party
in a transaction that is financially favorable to Unitholders, or other Potential Strategic Transactions (although each such transaction
would have to be approved via individual Trust Indenture amendments and would be difficult to negotiate and effect without the support
of a governing body and professional management team).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>SOFTVEST CANNOT GUARANTEE THAT IF (1)&nbsp;THE
INDENTURE REFORMATION IS APPROVED, THE PROPOSED CONVERSION WILL BE PURSUED OR COMPLETED OR (2)&nbsp;THE PROPOSED CONVERSION IS COMPLETED,
BLACKBEARD AND ITS AFFILIATES (OR ANY OTHER COUNTERPARTY) WILL ENTER INTO ANY POTENTIAL STRATEGIC TRANSACTION ON TERMS ACCEPTABLE TO THE
BOARD OF DIRECTORS OR OTHER GOVERNING BODY OF NEWCO OR THAT THE BOARD OF DIRECTORS OR SUCH OTHER GOVERNING BODY OF NEWCO WILL ENGAGE IN
ANY DISCUSSION RELATED TO ONE OR MORE POTENTIAL STRATEGIC TRANSACTIONS.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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