San Juan Basin Royalty Trust Announces Hilcorp’s 2019 Capital Plan
March 01 2019 - 9:00AM
Business Wire
The San Juan Basin Royalty Trust (NYSE:SJT) (the "Trust")
announced today that the operator of the Trust's Subject Interests,
Hilcorp San Juan L.P. (“Hilcorp”), has provided the Trust with
Hilcorp's capital project plan for 2019 (the “2019 Plan”). Hilcorp
has estimated that its 2019 capital expenditures for properties
subject to the Trust’s royalty interest to be $2,653,000.
The principal asset of the Trust is a 75% net overriding royalty
interest carved out of certain oil and gas leasehold and royalty
interests in properties owned by Hilcorp (the “Subject Interests”)
located in the San Juan Basin, and more particularly in San Juan,
Rio Arriba and Sandoval counties of northwestern New Mexico. The
Trust relies upon Hilcorp's estimates of its capital expenditures
in calculating the Trust's distributable income to its unit
holders.
Hilcorp informed the Trust that its 2019 Plan for the Subject
Interests includes six capital projects. Hilcorp further detailed
to the Trust that it has allocated approximately $728,000 of the
2019 Plan's budget towards five well recompletions scheduled to be
completed in the Mesaverde and Fruitland Coal formations, and an
additional approximately $1,925,000 of the 2019 Plan's budget
towards one horizontal well to be drilled in the Mancos formation.
Hilcorp will be the operator of all the projects included in the
2019 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 in the 2019 Plan, Hilcorp has
advised the Trust that actual capital costs may vary from these
estimates.
Capital expenditures by Hilcorp of approximately $2.4 million
were included in calculating the royalty income paid to the Trust
during calendar year 2018. In 2018, Hilcorp allocated approximately
$2.0 million of the capital expenditures towards 15 well
recompletions and an additional approximately $0.4 million towards
six facility projects.
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,” "subject to," 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/20190301005020/en/
San Juan Basin Royalty TrustCompass Bank, TrusteeJoshua R.
Peterson, Senior Vice President & Trust OfficerKaye Wilke,
Investor Relations, toll-free: (866) 809-4553Fax: (817) 735-0936
Website: www.sjbrt.com e-mail: sjt.us@bbva.com
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