Market Overview

San Juan Basin Royalty Trust Declares January 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 $3,115,522.27 or
$0.066844 per unit, based principally upon estimated
production during the month of November 2017. The distribution is
payable February 14, 2018, to unit holders of record as of January 31,

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 November
2017 installed, and therefore does not have the appropriate detail to
provide actual revenue numbers for the January 2018 distribution.

Therefore, Hilcorp estimated the January 2018 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 January 2018 declaration of cash
distribution includes an additional $1.0 million in estimated gross
revenue based on Hilcorp's knowledge that production volumes in November
2017 were in line with production volumes during the previous month. The
January 2018 declaration of cash distribution includes actual expenses
for the month of November, however, severance taxes continue to be

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 November 2017. Dividing revenues by production
volume yielded an average estimated gas price for November 2017 of $2.60
per Mcf ($2.34 per MMBtu) which was identical to August, September and
October 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 November 2017, capital costs were $66,207, lease
operating expenses were $1,783,260 and property taxes were $26.
Estimated severance taxes were $594,800.

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