San Juan Basin Royalty Trust Declares December Cash Distribution

FORT WORTH, Texas–(BUSINESS WIRE)–Compass Bank, as Trustee of the San Juan Basin Royalty Trust (the
“Trust”) (NYSE:SJT), today declared a monthly cash distribution to the
holders of its units of beneficial interest of $3,415,851.12 or
$0.073288 per unit, based principally upon estimated
production during the month of October 2017. The distribution is payable
January 16, 2018, to unit holders of record as of December 29, 2017.

The sale of San Juan Basin assets, including the oil and gas interests
from which the Trust’s royalty interest was carved (“Subject
Interests”), from Burlington Resources Oil & Gas Company LP
(“Burlington”) to Hilcorp San Juan L.P. (“Hilcorp”) closed on July 31,
2017. Due to the transition from Burlington, Hilcorp informed the Trust
that Hilcorp does not yet have all of the revenue decks for October 2017
installed, and therefore does not have the appropriate detail to provide
actual revenue numbers for the December 2017 distribution.

Therefore, Hilcorp estimated the December 2017 distribution based on the
revenue distribution detail for the July 2017 production month
(September distribution month) previously provided by Burlington and
rounded to the nearest thousand. The December 2017 declaration of cash
distribution includes an additional $1.0 million in estimated gross
revenue based on Hilcorp’s knowledge that production volumes in October
2017 were in line with production volumes during the month of September
2017. Severance taxes continue to be estimated.

The December 2017 declaration of cash distribution includes actual
expenses for the month of October 2017 along with a true-up of the
actual versus previously estimated expense numbers for August 2017.

Hilcorp has also informed the Trust that Hilcorp may need to use
estimated revenue and severance tax numbers to calculate distributions
for subsequent months. Once Hilcorp has all of the revenue decks
finalized, Hilcorp will reconcile the actual revenue numbers versus the
estimated numbers and true-up any distributions, as needed.

Estimated gas production for the Subject Interests totaled 2,155,000 Mcf
(2,394,444 MMBtu) for October 2017. Dividing revenues by production
volume yielded an average estimated gas price for October 2017 of $2.60
per Mcf ($2.34 per MMBtu) which was identical to August and September
2017.

The average monthly gas price Hilcorp reports to the Trust is a
calculated price. It is determined by dividing gross monthly revenue by
production volume, and therefore, it does not represent an average of
actual sales prices. 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.

For the month ended October 2017, there was a $3,754 credit for capital
costs and a $34,438 credit for property taxes. Lease operating expenses
were $1,355,011. Estimated severance taxes were $594,800.

Contacts

San Juan Basin Royalty Trust
Compass Bank, Trustee
Joshua R.
Peterson, Vice President & Senior Trust Officer
Kaye Wilke,
Investor Relations, toll-free: (866) 809-4553
[email protected]
www.sjbrt.com