San Juan Basin Royalty Trust Declares Monthly Cash Distribution

Compass Bank, as Trustee of the San Juan Basin Royalty Trust (NYSE:SJT), today declared a monthly cash distribution to the holders of its units of beneficial interest of $502,840.18 or $0.010789 per unit, based principally upon production during the month of July 2012. The distribution is payable October 15, 2012, to unit holders of record as of September 28, 2012.

The distribution for September was reduced by $1,090,583 as a result of an adjustment of lease operating expense and capital costs that were understated in the April 2012 distribution due to the miscalculation by Burlington Resources Oil & Gas Company LP (“Burlington”). The miscalculation resulted in overpayments to the Trust for April through July 2012. As previously disclosed, and as permitted under the terms of the Royalty conveyance document, Burlington intends to also adjust lease operating expense and capital costs during the months of October and November 2012 to recover the overpayments. Burlington reports that oil revenues for the month of July were lower than average due to the timing of tank liftings whereby produced oil is withdrawn from the storage tanks and sold. Fewer than average tank liftings occurred in July 2012.

Gas production for the properties from which the royalty was carved (the “Underlying Properties”) totaled approximately 3,201,125 Mcf (3,448,888 MMBtu). Dividing revenues by production volume yielded an average gas price for July 2012 of $2.21 per Mcf ($2.05 per MMBtu) as compared to $2.70 per Mcf ($2.46 per MMBtu) for June 2012. 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 $2,033,017. Lease operating expenses were $3,672,116 and taxes were $727,757.


San Juan Basin Royalty Trust
Compass Bank
Lee Ann Anderson, 866-809-4553
Vice President & Senior Trust Officer
Kaye Wilke, 866-809-4553
Investor Relations
Fax: 817-735-0936
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