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James Duade's Blog 1. Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. The Treasure Island Royalty Trust is owed an interest in any production of hydrocarbons that occurs on several blocks of land in the shallow waters of the Gulf of Mexico.
To date no oil or natural gas production has occurred on the land, and two recent failed drilling attempts by BP and Exxon have kept interest in the trust to a minimum. However, recent events have created a reason to be optimistic. This somewhat lengthy article aims to bring clarity on why this royalty trust is of interest.
An attempt is made to give a background on the geological significance of the Gulf of Mexico shelf, and the sordid history of the trust. Furthermore, several explanations are given on how to value the trust using a variety of assumptions.