SJT News & Events

Argent Trust Company, as the trustee of the San Juan Basin Royalty, reported that it will not declare a monthly cash distribution to the holders of its Units of beneficial interest due to the application of net proceeds of $1,499,498, which amount would otherwise be payable to the Trust as royalty income, to the balance of excess production costs accrued as a result of Hilcorp San Juan L.P.'s drilling of two new horizonal wells in 2024. Excess production costs occur when production costs and capital expenditures exceed the gross proceeds for a certain period. The balance of cumulative excess production costs is currently approximately $15,160,257 gross a decrease in the deficit of $1,999,331 gross from last month's reporting period. Hilcorp will continue to charge the balance of excess production costs to the Trust's net proceeds each month. Until the balance is paid in full, the Trust will not receive royalty income as all net proceeds will be applied to the balance of excess production costs. No cash distributions will be made by the Trust until future net proceeds are sufficient to pay Trust liabilities and replenish cash reserves. Hilcorp reported $6,984,564 of total revenue from the Subject Interests for the production month of March, consisting of $6,904,591 of gas revenues and $79,973 of oil revenues. For the Subject Interests, Hilcorp reported $4,985,233 of production costs for the production month of March 2025, consisting of $3,193,460 of lease operating expenses, $786,589 of severance taxes, and $1,005,184 of capital costs.

San Juan Basin Royalty Trust will not declare a monthly cash distribution to the holders of its Units of beneficial interest due to the application of net proceeds of $3,435,269, which amount would otherwise be payable to the Trust as royalty income, to the balance of excess production costs accrued as a result of Hilcorp San Juan's drilling of two new horizonal wells in 2024. The balance of cumulative excess production costs is currently approximately $17,159,588 gross - $12,869,691 net to the Trust -, a decrease in the deficit of $4,580,359 gross - $3,435,269 net to the trust - from last month's reporting period. Until the balance is paid in full, the Trust will not receive royalty income as all net proceeds will be applied to the balance of excess production costs. No cash distributions will be made by the Trust until future net proceeds are sufficient to pay Trust liabilities and replenish cash reserves. Hilcorp reported $7,869,451 of total revenue from the Subject Interests for the production month of February 2025, consisting of $7,685,519 of gas revenues and $183,932 of oil revenues. For the Subject Interests, Hilcorp reported $3,289,092 of production costs for the production month of February 2025, consisting of $2,628,926 of lease operating expenses, $278,026 of severance taxes, and $382,140 of capital costs.

Argent Trust Company, as the trustee of the San Juan Basin Royalty Trust, reported that it will not declare a monthly cash distribution to the holders of its Units of beneficial interest due to excess production costs for the Trust's subject interests during the production month of December 2024, as well as continued low natural gas pricing. Excess production costs occur when production costs and capital expenditures exceed the gross proceeds for a certain period. Excess production costs for this reporting period are due primarily to significant lease operating expenses and capital expenditures associated with Hilcorp San Juan's 2024 capital project plan.

San Juan Basin Royalty Trust will not declare a monthly cash distribution to the holders of its Units of beneficial interest due to excess production costs for the Trust's subject interests during the production month of November 2024, as well as continued low natural gas pricing. Excess production costs occur when production costs and capital expenditures exceed the gross proceeds for a certain period. Excess production costs for this reporting period are due primarily to significant lease operating expenses and capital expenditures associated with Hilcorp San Juan's 2024 capital project plan. Hilcorp reported $4.88M of total revenue from the Subject Interests for the production month of November 2024, consisting of $4.75M of gas revenues and $128.4K of oil revenues. For the Subject Interests, Hilcorp reported $13,139,376 of production costs for the production month of November 2024, consisting of $2,634,510 of lease operating expenses, $597,211 of severance taxes, and $9,907,655 of capital costs. Hilcorp will charge the excess production costs of approximately $29,506,766 gross to the next month's distribution. No cash distributions will be made by the Trust until future net proceeds are sufficient to pay Trust liabilities and replenish cash reserves. Prior to any future distributions to Unit Holders, the Trustee plans to replenish the cash reserves and continue to increase the cash reserves to $2.0M.