San Juan Basin Royalty Trust Announces Hilcorp’s Revised 2019 Capital Expenditures Plan
May 09 2019 - 9:00AM
Business Wire
Compass Bank, as Trustee of the San Juan Basin Royalty Trust
(the “Trust”) (NYSE:SJT), today reported that Hilcorp San Juan L.P.
(“Hilcorp”), has provided the Trust with an update to its
previously reported 2019 Capital Expenditures Plan (the “Revised
Plan”).
Hilcorp’s original 2019 capital expenditures plan (the “Original
Plan”), announced by the Trust on March 1, 2019, estimated
Hilcorp's capital expenditures to be $2,653,000 for the Trust’s
subject interests. Of this amount, the Original Plan allocated
approximately $728,000 towards five well recompletions and an
additional $1,925,000 towards one horizontal well to be drilled in
the Mancos formation (Trieb Federal Com 601 #1H).
The Revised Plan increases Hilcorp's estimated 2019 capital
expenditures to approximately $12.6 million for the subject
interests and therefore, may cause future distributions to be
lower. This amount increases the total well recompletions scheduled
to be completed to seventeen, primarily in the Mesaverde formation,
and projects completing one horizontal well in the Mancos formation
and one horizontal well in the Fruitland Coal formation. The
Revised Plan allocates approximately $3.7 million towards the well
recompletions and approximately $8.9 million towards the drilling
of the horizontal wells.
Included within the Revised Plan is an increase in the estimated
cost of the Trieb Federal Com 601 #1H horizontal well from
approximately $1.9 million to approximately $7.7 million. Hilcorp
has informed the Trust that the revisions are due to the
inadvertent omission by Hilcorp to include the total project cost
in the Original Plan. The estimated capital expenditures to the
subject interests for the Fruitland Coal horizontal well (Trail
Canyon 104H) are approximately $1.2 million.
Hilcorp will be the operator of all the projects included in the
Revised Plan, and has further informed the Trust that its planned
project status for 2019 is fluid and that additional projects may
be added. Due to this fluidity, Hilcorp has advised the Trust that
actual capital costs may vary from these estimates.
Except for historical information contained in this news
release, the statements in this news release are forward-looking
statements that are made pursuant to the Safe Harbor Provisions of
the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements generally are accompanied by words such
as “estimates,” “anticipates,” “could,” “plan,” or other words that
convey the uncertainty of future events or outcomes.
Forward-looking statements and the business prospects of San Juan
Basin Royalty Trust are subject to a number of risks and
uncertainties that may cause actual results in future periods to
differ materially from the forward-looking statements. These risks
and uncertainties include, among other things, certain information
provided to the Trust by Hilcorp, volatility of oil and gas prices,
governmental regulation or action, litigation, and uncertainties
about estimates of reserves. These and other risks are described in
the Trust’s reports and other filings with the Securities and
Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20190509005114/en/
San Juan Basin Royalty TrustCompass Bank, Trusteewebsite:
www.sjbrt.com e-mail: sjt.us@bbva.com
Joshua R. Peterson, Senior Vice President & Trust
OfficerKaye Wilke, Investor Relations, toll-free: (866)
809-4553
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