San Juan Basin Royalty Trust Declares No Cash Distribution for May

Compass Bank, as Trustee of the San Juan Basin Royalty Trust (NYSE:SJT), today reported it will not declare a monthly cash distribution to the holders of its Units of beneficial interest for the month of May 2015. Normally, a distribution would be made in May based principally upon production during the month of March 2015. However, primarily due to low natural gas pricing and higher capital costs during the month of March, the cash attributable to the Royalties is $612,141. Those funds will be utilized to pay Trust administrative expenses of $164,889 and to increase cash reserves. No cash distributions will be made by the Trust until future net proceeds are sufficient to pay then-current Trust liabilities and to replenish and maintain cash reserves in the amount of at least $500,000. No assurances can be given as to the timing or amount of any such future distributions.

Gas production for the properties from which the royalty was carved (the “Underlying Properties”) totaled approximately 2,485,829 Mcf (2,732,418 MMBtu). Dividing revenues by production volume yielded an average gas price for March 2015 of $2.44 per Mcf ($2.22 per MMBtu) as compared to $2.47 per Mcf ($2.25 per MMBtu) for February 2015.

The average monthly gas price Burlington reports to the Trust is a calculated price. It is determined by dividing gross monthly revenue by production volume, 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. Capital costs for the month were $2,120,135. Lease operating expenses were $2,655,320 and taxes were $672,617.

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