Market Overview

San Juan Basin Royalty Trust Declares June 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 $27,876.27 or $0.000598
per Unit, based principally upon estimated oil and natural gas
production during the month of April 2018. The distribution is payable
July 16, 2018, to Unit Holders of record as of June 29, 2018.

Hilcorp informed the Trust that it needed to estimate the revenue for
the April 2018 production month, similar to the previous month, because
their accounting system is not allowing them to record revenue at the
well level. The June 2018 distribution includes a revenue true-up for
the September 2017 and March 2018 production months. The true-up
resulted in an approximately $1.5 million reduction in gross proceeds.

Gas production for the Subject Interests totaled 3,321,522 Mcf
(3,690,580 MMBtu) for April 2018. Dividing revenues by production volume
yielded an average gas price for April 2018 of $1.12 per Mcf ($1.00 per
MMBtu) as compared to an average gas price for March 2018 of $1.86 per
Mcf ($1.67 MMBtu).

Last month the Trust reported that the May 2018 distribution included a
true-up for the August 2017 production month resulting in an
approximately $1.9 million reduction in gross proceeds. Hilcorp has
informed the Trust that approximately $1.1 million in gas revenue was
inadvertently credited to the March 2018 production month instead of the
August 2017 production month. Therefore, the true-up in the May 2018
distribution resulted in an approximately $0.8 million reduction in
gross proceeds versus the $1.9 million previously reported. All other
information, including the May 2018 cash distribution amount remains

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 April 2018, capital costs were $22,127. Lease
operating expenses and property taxes were $2,338,363. Severance taxes
were $402,072.

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