San Juan Basin Royalty Trust Announces Hilcorp’s Updates on Capital Expenditures Plan
July 09 2019 - 9:00AM
Business Wire
BBVA USA, as Trustee of the San Juan Basin Royalty Trust (the
“Trust”) (NYSE:SJT), today reported that the operator of the
Trust’s subject interests, Hilcorp San Juan L.P. (“Hilcorp”), has
provided the Trust with updates and comments to its current 2019
Capital Expenditures Plan (“Capital Plan”).
More specifically, the Trust and its compliance auditors
recently met with senior representatives from Hilcorp to discuss
the status of the Capital Plan, production, and pending audit
issues.
Hilcorp informed the Trust that oil and natural gas production
from January 2019 through April 2019 was reduced due to severe
winter conditions not seen in the San Juan Basin in over a decade.
Such atypical conditions directly impacted production and physical
access to well sites and facilities, maintenance, and
transportation.
Despite low natural gas prices, Hilcorp believes the
recompletions in the Capital Plan are sound economic projects.
Hilcorp reported to the Trust that ten wells in the Capital Plan
have been recompleted or are in progress as of the April 2019
reporting month, which corresponds to the June 2019 Trust
distribution month. Well performance from the ten well recompletion
package is exceeding Hilcorp’s initial expectations.
Hilcorp advised the Trust that it plans to drill two new wells
in the second half of 2019 that will be funded from the Capital
Plan. The first well is a horizontal well targeting the Fruitland
Coal formation and the second well is a horizontal well targeting
the Mancos formation. Capital spending on the Fruitland Coal well
began in June 2019 and the well is expected to begin production in
July 2019. Capital spending on the Mancos well is expected to begin
in the third quarter of 2019, contingent on receiving a permit from
the BLM, and the well is expected to begin production in the fourth
quarter of 2019. Hilcorp informed the Trust that the Capital Plan
for the Mancos well is higher than the Fruitland Coal well because
the anticipated Mancos well will be drilled to a significantly
deeper depth, have a longer horizontal lateral, and will be
hydraulically fractured.
The Trust and its compliance auditors are also working with
Hilcorp to schedule a field visit to the San Juan Basin to further
understand Hilcorp’s recent operations, workflows, methodology, and
current Capital Plan.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190709005047/en/
San Juan Basin Royalty Trust BBVA USA, Trustee 300 West Seventh
St., Suite B, Fort Worth, Texas 76102 website: www.sjbrt.com
e-mail: sjt.us@bbva.com
Joshua R. Peterson, Senior Vice President & Trust Officer
Kaye Wilke, Investor Relations, toll-free: (866) 809-4553
San Juan Basin Royalty (NYSE:SJT)
Historical Stock Chart
From Aug 2024 to Sep 2024
San Juan Basin Royalty (NYSE:SJT)
Historical Stock Chart
From Sep 2023 to Sep 2024