San Juan Basin Royalty Trust Supplements Prior Release Concerning Monthly Cash Distribution

Compass Bank (the "Trustee") as Trustee of the San Juan Basin Royalty Trust (NYSE:SJT) (the "Trust"), today announced that it has received additional information from Burlington Resources Oil & Gas Company LP ("Burlington") regarding the content of the Trust’s news release issued on November 18, 2013.

For the months of April 2013 to October 2013, Burlington caused production volumes to be overstated by a total of 1,314,555 Mcf (1,608,598 MMBtu) due to a workpaper formulation error. The November distribution reflects a volume adjustment to correct the overstated production volumes. Burlington indicated this was a volume-only adjustment which did not impact the distribution amount. However, it did affect the volumes reported and therefore, the calculation of the average price per Mcf and MMBtu. Following the downward adjustment, the gas production volumes reported in November 2013 totaled 1,345,023 Mcf (1,300,953 MMBtu.)

The average monthly gas price Burlington reports to the Trust is a calculated price. It is determined by dividing gross monthly revenue by production volume, and it does not represent an average of actual sales prices. Because the production volume number used in the calculation reported in November was reduced by 1,314,555 Mcf, the resulting average sales price calculated to an inordinately high $7.62 per Mcf ($7.88 per MMBtu).

Burlington’s summary of the reported volumes and prices, as corrected, is as follows:
                           
MCFs MCFs/Per Day MCF Price MMBTUs MMBTU/Day MMBTU Price
Distribution Month:
 
April - Reported 2,475,083 88,396 $3.26 2,726,397 97,371 $2.96
April - Corrected 2,304,419 82,301 $3.51 2,517,531 89,912 $3.21
 
May - Reported 2,955,797 95,348 $3.32 3,259,832 105,156 $3.01
May - Corrected 2,766,569 89,244 $3.55 3,028,013 97,678 $3.25
 
June - Reported 2,938,341 97,945 $3.66 3,229,404 107,647 $3.33
June - Corrected 2,749,985 91,666 $3.91 2,999,765 99,992 $3.59
 
July - Reported 2,983,789 96,251 $3.75 3,273,998 105,613 $3.42
July - Corrected 2,804,213 90,458 $3.99 3,054,370 98,528 $3.66
 
August - Reported 2,887,968 96,266 $3.72 3,186,342 106,211 $3.37
August - Corrected 2,696,032 89,868 $3.98 2,951,342 98,378 $3.64
 
September - Reported 2,949,189 95,135 $3.45 3,255,683 105,022 $3.12
September - Corrected 2,751,286 88,751 $3.70 3,013,334 97,204 $3.37
 
October - Reported 2,960,867 95,512 $3.46 3,258,224 105,104 $3.15
October - Corrected 2,763,975 89,160 $3.71 3,016,927 97,320 $3.40
 

Burlington indicates it has implemented additional procedures to their process to eliminate the possibility of a similar error occurring in the future. The Trust’s external compliance auditors have been consulted and will be reviewing Burlington’s revised calculations on behalf of the Trust.

Capital drilling costs reported in November 2013 were $-150,882. Burlington stated that the negative capital cost number is the result of an adjustment due to an error in capital cost allocation for a specific well. The entire cost of the well was included in calculating royalty income distributed to the Trust, but 25% should have been charged to others. The Trust received a credit to capital costs to correct that error, which credit exceeded the other capital costs properly charged to the Trust for the month.

Except for historical information contained in this news release, the statements in this news release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and the business prospects of San Juan Basin Royalty Trust are subject to a number of risks and uncertainties that may cause actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of oil and gas prices, governmental regulation or action, litigation, and uncertainties about estimates of reserves. These and other risks are described in the Trust’s reports and other filings with the Securities and Exchange Commission.

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX