Market Overview

San Juan Basin Royalty Trust Declares October Cash Distribution


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 $3,390,361.80 or
$0.072741 per unit, based principally upon estimated
production during the month of August 2017. The distribution is payable
November 14, 2017, to unit holders of record as of October 31, 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. The first production month for which Hilcorp is responsible is
August 2017. Due to the transition from Burlington, Hilcorp informed the
Trust that Hilcorp does not yet have all of the revenue and expense
decks for August 2017 installed, and therefore does not have the
appropriate detail to provide actual revenue and expense numbers for the
October 2017 distribution.

Therefore, Hilcorp estimated the October 2017 distribution based on
prior months' distribution detail (revenue and expenses) previously
provided by Burlington and rounded to the nearest thousand. The October
2017 declaration of cash distribution includes an additional $1.0
million in estimated revenue based on Hilcorp's knowledge that
production volumes increased during the month of August 2017. Hilcorp
has informed the Trust that Hilcorp may also need to use estimated
revenue and expense numbers to calculate distributions for subsequent
months. Once Hilcorp has all of the revenue and expense decks installed,
Hilcorp will reconcile the actual revenue and expense 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 August 2017. Dividing revenues by production
volume yielded an average estimated gas price for August 2017 of $2.60
per Mcf ($2.34 per MMBtu) compared to $2.59 per Mcf ($2.32 per MMBtu)
for July 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 August 2017, estimated capital costs were $4,983,
estimated lease operating expenses were $1,429,500, and estimated
property taxes were $34,470. Estimated severance taxes for the August
2017 production month were $594,800.

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