The following review of the Trust's financial condition and results of operations should be read in conjunction with the financial statements and notes thereto. The Trust was formed on August 3, 2006. The conveyance of the net profits interest, however, did not occur until January 24, 2007. The Trust's first quarterly distribution was paid on February 23, 2007 and consisted of an amount in cash paid by MV Partners equal to the amount that would have been payable to the Trust had the net profits interest been in effect during the period from July 1, 2006 through December 31, 2006.

The Trust's purpose is, in general, to hold the net profits interest and the assigned interest in the hedge contracts, to distribute to the Trust unitholders cash that the Trust receives in respect of the net profits interests and the assigned interest in the hedge contracts and to perform certain administrative functions in respect of the net profits interest and the Trust units. The Trust derives substantially all of its income and cash flows from the net profits interest and the hedge contracts.

Results of the Operations for the Quarters Ended June 30, 2008 and 2007

As previously noted, the cash received by the Trust during the quarter ended June 30, 2008 substantially represents the production by MV Partners from December 2007 through February 2008 and the cash received by the Trust during the quarter ended June 30, 2007 substantially represents the production by MV Partners from December 2006 through February 2007. Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties increased $1,103,972 to $7,687,162 for the period from January 1, 2008 through March 31, 2008 from $6,583,190 for the period from January 1, 2007 through March 31, 2007. Included in this amount are payments to settle hedge and other derivatives totaling $7,761,757 for the period from January 1, 2008 through March 31, 2008 and $17,271 for the period from January 1, 2007 through March 31, 2007. In addition, amounts received to settle hedge and other derivatives were $0 for the period from January 1, 2008 through March 31, 2008 and $458,639 for the period from January 1, 2007 through March 31, 2007, which resulted in total cash receipts over cash disbursements of $7,687,162 and $7,041,829, respectively. The Trust's net profits interest (80%) of these totals were $6,149,730 and $5,633,463, respectively, and was increased by application of the reserve for future capital expenditures of $500,000 for the quarter ended June 30, 2007, resulting in income from net profits interest and hedge and other derivative activities of $6,149,730 and $6,133,463 for the quarters ending June 30, 2008 and 2007, respectively. The Trust's portion represents the cash proceeds received by the Trust, which is based upon the cash receipts from MV Partners for the oil and gas production. The revenues from oil production are typically received one month after production, thus the cash received by the Trust during the quarter ended June 30, 2008 substantially represents the production by MV Partners from December 2007 through February 2008 and the quarter ended June 30, 2007 substantially represents the production by MV Partners from December 2006 through February 2007. The Trustee has paid general and administrative expenses of $400,143 and $144,894 for the quarters ended June 30, 2008 and 2007, respectively. The distributable income for the quarter ended June 30, 2008 was $5,999,739, a decrease of $133,724 from a distributable income of $6,133,463 for the quarter ended June 30, 2007.

The average price received for crude oil sold was $88.45 per Bbl while the average price received for natural gas sold was $5.47 per Mcf for the period from January 1, 2008 through March 31, 2008. The average price received for crude oil sold was $55.06 per Bbl while the average price received for natural gas sold was $5.62 per Mcf for the period from January 1, 2007 through March 31, 2007.

The overall production sales volumes collected attributable to the 80% net profits interest that is for the oil and gas production collected during the period from January 1, 2007 through March 31, 2007 were 183,099 Bbls of oil, 18,458 Mcf of natural gas and 948 Bbls of natural gas liquids for a total equivalent barrels of oil of 186,792.

The April 2008 distribution of net profits was impacted by production curtailment affecting the underlying properties as the result of winter ice storms that impacted western Kansas. The ice associated with these storms disabled electrical power to the affected underlying properties for an extended period of time resulting in some curtailed production.

The April 2008 distribution of net profits was also impacted by the duplication of hedged volumes in January 2008. January crude oil swap contracts in the notional volume of 45,000 barrels at a price of $62.99 settled in the first quarter 2008. This volume was in addition to the notional volume of 61,167 barrels that had been scheduled as the average monthly notional volume for 2008. Given the NYMEX price contracts for January crude oil, the incremental hedged volumes resulted in an additional expense of $1,347,255, which reduced the cash available for distribution for the first quarter 2008 by $1,077,804. This duplication of hedged volumes for January 2008 is a one-time event in the hedge and derivative contracts program and will not occur again for the duration of the Trust.

The April 2007 distribution of net profits was impacted by production curtailment during the first quarterly payment period affecting the underlying properties as the result of severe winter storms that severely impacted western Kansas and eastern Colorado. The snow and ice associated with these storms disabled electrical power to the affected underlying properties for an extended period of time and rendered some properties inaccessible. Most of the production curtailed as a result of these storms was restored by the end of March 2007, and the storm effects on production from the underlying properties was greatly reduced during the second quarterly payment period.

The April 2007 distribution of net profits was also impacted by the inclusion of lease maintenance and development costs billed in December 2006. Such costs were included in the calculation of the April 2007 distribution because of the cash method of accounting.

As noted above, the amounts reflected in the accompanying financial statements for the Trust's quarter ended June 30, 2008 reflect cash received by the Trust during the quarter. Such cash is primarily derived from production by MV Partners from December 2007 through February 2008. MV Partners distributed cash to the Trust in July 2008 which will be reflected in the Trust's financial statements for the quarter ended September 30, 2008. The cash distributed to the Trust in July 2008 is primarily derived from production by MV Partners from March 2008 through May 2008. The discussion below relates to cash received by MV Partners during the quarter ended June 30, 2008 and distributed to the Trust in July 2008, which will be reflected in the Trust's financial statements for the quarter ended September 30, 2008.

Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties increased $891,658 to $9,818,710 for the three months ended June 30, 2008 from $8,927,052 for the three months ended June 30, 2007. Included in these amounts are

payments to settle hedge and other derivatives totaling $10,260,421 and $214,103, respectively. In addition, amounts received to settle hedge and other derivatives decreased $271,367 for the three months ended June 30, 2008 from $271,367 for the three months ended June 30, 2007, which resulted in a total cash receipts over cash disbursements of $9,818,710 and $9,198,419, respectively. The Trust's portion (80%) of these totals were $7,854,968 and $7,358,735, respectively, and was decreased by a repayment of an advance of $400,000 for the quarter ending September 30, 2008 and increased by net proceeds from business interruption insurance of $200,000 for the quarter ended September 30, 2007, resulting in distributable income of $7,454,968 and $7,558,735 for the quarters ending September 30, 2008 and 2007, respectively.

The average price received for crude oil sold was $109.31 per Bbl while the average price received for natural gas sold was $6.76 per Mcf for the period from April 1, 2008 through June 30, 2008. The average price received for crude oil sold was $58.23 per Bbl while the average price received for natural gas sold was $6.02 per Mcf for the period from April 1, 2007 through June 30, 2007.

The overall production sales volumes collected attributable to the 80% net profits interest that is for the oil and gas production collected during the quarter ended June 30, 2008 were 196,711 Bbls of oil, 21,686 Mcf of natural gas and 944 Bbls of natural gas liquids for a total equivalent barrels of oil of 200,939.

The overall production sales volumes collected attributable to the 80% net profits interest that is for the oil and gas production collected during the quarter ended June 30, 2007 were 207,258 Bbls of oil, 18,186 Mcf of natural gas and 700 Bbls of natural gas liquids for a total equivalent barrels of oil of 210,744.

Results of the Operations for the Six Months Ended June 30, 2008 and 2007

Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties decreased $5,398,698 to $16,876,793 for the period from October 1, 2007 through March 31, 2008 from $22,275,491 for the period from July 1, 2006 through March 31, 2007. Included in this amount are payments to settle hedge and other derivatives totaling $12,796,360 and $1,595,757, respectively. In addition, amounts received to settle hedge and other derivatives was $0 for the period from October 1, 2007 through March 31, 2008 and $978,587 for the period from July 1, 2006 through March 31, 2007, which resulted in a total cash receipts over cash disbursements of $16,876,793 and $23,254,078, respectively. The Trust's portion (80%) of these totals were $13,501,435 and $18,603,262, respectively, and was reduced by a net reserve for future capital expenditures of $500,000 for the six months ended June 30, 2007, resulting in the income from net profits interest and hedge and other derivative activities of $18,103,262 for that period. The revenues from oil production are typically received one month after production, thus the cash received by the Trust during the six months ended June 30, 2008 substantially represents the production by MV Partners from September 2007 through February 2008 and the cash received by the Trust during the six months ended June 30, 2007 substantially represents the production by MV Partners from July 2006 through February 2007. The Trustee has paid general and administrative expenses of $551,869 and $210,803 for the six months ended June 30, 2008 and 2007, respectively. The distributable income for the six months ended June 30, 2008 was $13,321,444, a decrease of $4,452,319 from a distributable income of $17,773,763 for the six months ended June 30, 2007.

The overall production sales volumes collected attributable to the 80% net profits interest which is for the oil and gas production collected during the six months ended June 30, 2008 were 382,017 Bbls of oil, 42,773 Mcf of natural gas and 2,061 Bbls of natural gas liquids for a total equivalent barrels of oil of 390,485.

The overall production sales volumes collected attributable to the 80% net profits interest which is for the oil and gas production subsequent to July 1, 2006 and collected before March 31,2007 were 524,993 Bbls of oil, 52,762 Mcf of natural gas and 3,331 Bbls of natural gas liquids for a total equivalent barrels of oil of 535,952.

As noted above, the amounts reflected in the accompanying financial statements for the Trust's six month period ended June 30, 2008 reflect cash received by the Trust during the six months. Such cash is primarily derived from production by MV Partners from September 2007 through February 2008. MV Partners distributed cash to the Trust in July 2008 which will be reflected in the Trust's financial statements for the nine months ended September 30, 2008. The cash distributed to the Trust in July 2008 is primarily derived from production of the underlying properties from March 2008 through May 2008. The discussion below relates to cash received by MV Partners during the six months ended June 30, 2008 and 2007 and distributed to the Trust in April and July 2008 and 2007, respectively, which will be reflected in the Trust's financial statements for the nine months ending September 30, 2008.

Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties increased $1,995,630 from $17,505,872 for the six months ended June 30, 2008 from $15,510,242 for the six months ended June 30, 2007. Included in these amounts are payments to settle hedge and other derivatives totaling $18,022,179 and $231,374, respectively. In addition, amounts received to settle hedge and other derivatives decreased $730,006 to $0 for the six months ended June 30, 2008 from $730,006 for the six months ended June 30, 2007, which resulted in total cash receipts over cash disbursements of $17,505,872 and $16,240,248, respectively. The Trust's portion (80%) of these totals were $14,004,698 and $12,992,198, respectively. This amount was decreased by repayments of advances totaling $550,000 for the six months ended June 30, 2008 and increased by application of the reserve for future capital expenditures of $500,000 and net proceeds from business interruption insurance of $200,000 for the six months ended June 30, 2007, resulting in distributable income of $13,454,707 and $13,692,198 for the six months ending June 30, 2008 and 2007, respectively.

The average price received for crude oil sold was $99.20 per Bbl while the average price received for natural gas sold was $6.13 per Mcf for the six months ended June 30, 2008. The average price received for crude oil sold was $56.74 per Bbl while the average price received for natural gas sold was $5.82 per Mcf for the six months ended June 30, 2007.

The overall production sales volumes collected attributable to the 80% net profits interest that is for the oil and gas production collected during the six months ended June 30, 2008 were 381,823 Bbls of oil, 42,770 Mcf of natural gas and 1,794 Bbls of natural gas liquids for a total equivalent barrels of oil of 390,117.

Liquidity and Capital Resources

Other than Trust administrative expenses, including any reserves established by the Trustee for future liabilities, the Trust's only use of cash is for distributions to Trust unitholders. Administrative expenses include payments to the Trustee as well as an annual administrative fee to MV Partners pursuant to an administrative services agreement. Each quarter, the Trustee determines the amount of funds available for distribution. Available funds are the excess cash, if any, received by the Trust from the net profits interest, payments from the hedge contracts and other sources (such as interest earned on any amounts reserved by the Trustee) that quarter, over the Trust's liabilities for that quarter. Available funds are reduced by any cash the Trustee decides to hold as a reserve against future liabilities. The Trustee may borrow funds required to pay liabilities if the Trustee determines that the cash on hand and the cash to be received are insufficient to cover the Trust's liability. If the Trustee borrows funds, the Trust unitholders will not receive distributions until the borrowed funds are repaid.

Income to the Trust from the net profits interest is based on the calculation and definitions of "gross proceeds" and "net proceeds" contained in the conveyance.

As substantially all of the underlying properties are located in mature fields, MV Partners does not expect future costs for the underlying properties to change significantly as compared to recent historical costs other than increases due to increases in the general cost of oilfield services.

The Trust does not have any transactions, arrangements or other relationships with unconsolidated entities or persons that could materially affect the Trust's liquidity or the availability of capital resources.

Given the bankruptcy filing by Eaglwing and the uncertainty of recovery by MV Partners of its crude oil sales in June and July 2008, the scheduled quarterly distributions in October 2008 and January 2009 by the Trust may be substantially adversely impacted. See "-Subsequent Events."

Hedge Contracts

The revenues derived from the underlying properties depend substantially on prevailing crude oil and, to a lesser extent, natural gas and natural gas liquid prices. As a result, commodity prices also affect the amount of cash flow available for distribution to the Trust unitholders. Lower prices may also reduce the amount of oil, natural gas and natural gas liquids that MV Partners can economically produce. MV Partners sells the oil, natural gas and natural gas liquid production from the underlying properties under floating market price contracts each month. Under the required terms of a 2006 bank credit facility, MV Partners has entered into hedge contracts to reduce the exposure of the revenues from oil production from the underlying properties from 2008 through 2010 to fluctuations in crude oil prices and to achieve more predictable cash flow. However, these contracts limit the amount of cash available for distribution if prices increase. The hedge contracts consist of fixed price swap contracts that have been placed with major trading counterparties who MV Partners believes represent minimal credit risks, other than SemCrude, L.P., which has filed a voluntary petition for reorganization under

Chapter 11 of the United States Bankruptcy Code. See "-Subsequent Events". MV Partners cannot provide assurance, however, that these trading counterparties will not become credit risks in the future.

The crude oil swap contracts will settle based on the average of the settlement price for each commodity business day in the contract month. In a swap transaction, the counterparty is required to make a payment to MV Partners for the difference between the fixed price and the settlement price if the settlement price is below the fixed price. MV Partners is required to make a payment to the counterparty for the difference between the fixed price and the settlement price if the settlement price is above the fixed price. From July 1, 2008 through December 31, 2010, MV Partners' crude oil price risk management positions in swap contracts are as follows:

                                          Fixed Price Swaps
                                                     Weighted
                                      Volumes      Average Price
                   Month              (Bbls)         (Per Bbl)
                   July 2008             61,167             58.53
                   August 2008           61,167             58.53
                   September 2008        61,167             58.53
                   October 2008          61,167             58.53
                   November 2008         61,167             58.53
                   December 2008         61,167             58.53
                   January 2009          56,500             66.24
                   February 2009         56,500             66.24
                   March 2009            56,500             66.24
                   April 2009            56,500             66.24
                   May 2009              56,500             66.24
                   June 2009             56,500             66.24
                   July 2009             56,500             66.24
                   August 2009           56,500             66.24
                   September 2009        56,500             66.24
                   October 2009          56,500             66.24
                   November 2009         56,500             66.24
                   December 2009         56,500             66.24
                   January 2010          53,150             65.03
                   February 2010         53,150             65.03
                   March 2010            53,150             65.03
                   April 2010            53,150             65.03
                   May 2010              53,150             65.03
                   June 2010             53,150             65.03
                   July 2010             53,150             65.03
                   August 2010           53,150             65.03
                   September 2010        53,150             65.03
                   October 2010          53,150             65.03
                   November 2010         53,150             65.03
                   December 2010         53,150             65.03

Subsequent Events

As publicly reported, on July 22, 2008, SemCrude, L.P. ("SemCrude") and certain of its affiliates, including Eaglwing, filed voluntarily petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. Eaglwing purchased substantially all of the crude oil production of the underlying properties for the month of June 2008 and for the first 18 days of July 2008, after which date further sales to Eaglwing was terminated. As of the date of this Form 10-Q, Eaglwing has not yet paid the purchase price for such sales. Set forth below is a summary discussion of this matter, which is based on information provided to Trustee by representatives of MV Partners.

As part of its Chapter 11 filing, Eaglwing and certain of its debtor affiliates created a special supplier protection program for their critical providers of goods and services. Under the program, certain suppliers who contractually commit to continue doing business, on the same terms and reasonably equivalent volume as before the Chapter 11 filing, with the debtors until the earlier of January 1, 2009 and the effective date of a Chapter 11 plan may be eligible to receive full payment, as due, for goods and services that were provided before the filing, but for which the supplier has not yet been paid.

Based on a stated deadline, Vess Oil Corporation ("Vess Oil") and Murfin Drilling Company, Inc. ("Murfin Drilling"), individually and as contract operators of the underlying properties for which MV Partners is designated as the operator, submitted a filing on July 27, 2008 to be eligible to be considered such a critical provider; however, they conditioned their commitments to permit Vess Oil and Murfin Drilling to commence selling oil to other purchasers pending notification of acceptance and full payment by Eaglwing for crude oil production sold to it. As of the date of this Form 10-Q, Vess Oil and Murfin Drilling have not received notice that they have been designated as a critical provider, and there can be no assurance that Vess Oil and Murfin Drilling will be designated as such a critical provider. Vess Oil, Murfin Drilling and MV Partners continue to monitor the bankruptcy process and assess their rights and alternatives in the bankruptcy process. A primary concern of each of these entities with the special supplier protection program is assurance that all amounts owing will be paid, particularly in light of having to commit sales to Eaglwing instead of other purchasers.

The approximately $9.5 million in sales in June to Eaglwing of production from the underlying properties was to have been paid by July 20, 2008. The purchase price for the sales in July to Eaglwing of production from the underlying properties will be due by August 20, 2008; the dollar amount associated with such sales has not yet been determined, given the administrative aspects of the revenue distribution process, but is estimated to be between approximately $4.9 million and $5.4 million. The specified dollar amounts are associated with all production from the underlying properties, and not just the 80% portion attributable to the net profits interest held by the Trust.

As of August 7, 2008, field operations at the underlying properties returned to substantially normal operations, although it may be mid-August or so before the marketing of crude oil production will normalize to the sales process and . . .