FORT WORTH, Texas, October 19, 2012 -- Compass Bank, as
Trustee of the San Juan Basin Royalty Trust (NYSE:SJT),
today declared a monthly cash distribution to the holders
of its units of beneficial interest of $2,544,504.15 or
$0.054593 per unit, based principally upon production
during the month of August 2012. The distribution is
payable November 15, 2012, to unit holders of record as of
October 31, 2012.
The distribution for October was reduced by $767,122 as a
result of an adjustment of lease operating expense and
capital costs that were understated in the June 2012
distribution due to the miscalculation by Burlington
Resources Oil & Gas Company LP ("Burlington").
The miscalculation resulted in overpayments to the Trust
for April through July 2012. As previously disclosed, and
as permitted under the terms of the Royalty conveyance
document, Burlington intends to also adjust lease operating
expense and capital costs by approximately $786,377 in
November 2012 to recover the overpayment.
Gas production for the properties from which the royalty
was carved (the "Underlying Properties") totaled
approximately 2,202,291 Mcf (2,482,014 MMBtu). Dividing
revenues by production volume yielded an average gas price
for August 2012 of $4.14 per Mcf ($3.67 per MMBtu) as
compared to $2.21 per Mcf ($2.05 per MMBtu) for July 2012.
However, Burlington reports that production volumes for
July 2012 were overstated. The offset for the overstatement
has resulted in lower reported volumes for August 2012.
When revenues are divided by those lower reported volumes
to determine the average gas price for the month, the
result is a somewhat inflated $4.14 per Mcf for August. Had
the overstatement and resulting setoff not occurred, the
average price would have been $2.72 per Mcf for July and
$3.26 per Mcf for August 2012.
The average gas price may vary from the posted index price
for the San Juan Basin. The index price is a gross sales
price, and the revenues used in the calculation of average
gas prices are net of transportation, processing and
gathering costs. Furthermore, the distribution to the Trust
in any given month may include significant volume
adjustments for sales in prior months that reflect pricing
for those prior months. Capital costs for the month were
$1,590,517. Lease operating expenses were $3,464,718 and
taxes were $979,998.
Contact: San Juan Basin Royalty Trust
Lee Ann Anderson, Vice President & Senior Trust Officer
Kaye Wilke, Investor Relations, toll-free: (866)
Fax: (817) 735-0936