San Juan Basin Royalty Trust Declares October Cash Distribution

Compass Bank, as Trustee of the San Juan Basin Royalty Trust (the
“Trust”) (NYSE:SJT), today declared a monthly cash distribution to the
holders of its Units of beneficial interest (the “Unit Holders”) of
$3,518,388 or $0.075488 per Unit, based primarily upon production during
the month of August 2018, subject to certain adjustments for prior
months, and a reversal for prior capital expenditures (including
interest) erroneously charged to the Trust for the month of July 2018.
The distribution is payable November 15, 2018, to Unit Holders of record
as of October 31, 2018.

Based upon information provided to the Trust by the operator of the
Trust’s subject interests, Hilcorp San Juan L.P. (“Hilcorp”), gas
production for the Subject Interests totaled 2,530,624 Mcf (2,811,804
MMBtu) for August 2018, as compared to 3,038,035 Mcf (3,375,595 MMBtu)
for July 2018. Dividing revenues by production volume yielded an average
gas price for August 2018 of $2.25 per Mcf ($2.02 per MMBtu), as
compared to an average gas price for July 2018 of $1.77 per Mcf ($1.59
MMBtu).

Hilcorp’s royalty payment calculation includes a $2.37 million reversal
of capital expenditures for certain well recompletions that were
erroneously charged to the Trust, plus interest. The Trust will
replenish its cash reserves by $97,909, which is the amount utilized
last month to pay the Trust’s administrative expenses.

Hilcorp has advised the Trust that for the reporting month of August
2018, oil and gas production was accrued based on actual production
volumes, including an estimate of $169,000 for non-operated revenue. For
the month ended August 2018, Hilcorp reported to the Trust lease
operating expenses and property taxes of $2,549,734 and severance taxes
of $799,051. There were no capital costs charged to the Trust for the
reporting month of August. Hilcorp is reviewing its Revised 2018 Capital
Expenditure Plan that the Trust disclosed on September 20, 2018, to
determine how much of the disclosed future capital expenses would remain
attributable to the Trust. The Trust intends to continue to disclose
promptly such information to its Unit Holders following receipt and
verification.

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 “expects,” “estimates,” “anticipates,”
“should,” “plan,” “intend,” 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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