Market Overview

San Juan Basin Royalty Trust Declares February 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 $1,676,280.17 or
$0.035965 per unit, based principally upon production during the month
of December 2017. The distribution is payable March 14, 2018, to Unit
Holders of record as of February 28, 2018.

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 estimated revenue
for the August 2017 through November 2017 production months. Hilcorp
informed the Trust that revenue decks have been finalized for the
December 2017 production month and that the February 2018 declaration of
cash distribution includes actual revenue and expenses for the month of
December. Hilcorp will reconcile the actual revenue numbers versus the
estimated numbers for prior months and true-up any distributions, as

Gas production for the Subject Interests totaled 2,351,556 Mcf
(2,612,841 MMBtu) for December 2017. Dividing revenues by production
volume yielded an average gas price for December 2017 of $2.35 per Mcf
($2.11 per MMBtu) as compared to an average estimated gas price for
November 2017 of $2.60 per Mcf ($2.34 MMBtu).

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 December 2017, capital costs were $227,982, lease
operating expenses were $2,287,780 and property taxes were $26.
Severance taxes were $771,410.

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