0001193125-13-452893.txt : 20131125 0001193125-13-452893.hdr.sgml : 20131125 20131125152923 ACCESSION NUMBER: 0001193125-13-452893 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20131125 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20131125 DATE AS OF CHANGE: 20131125 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SAN JUAN BASIN ROYALTY TRUST CENTRAL INDEX KEY: 0000319655 STANDARD INDUSTRIAL CLASSIFICATION: OIL ROYALTY TRADERS [6792] IRS NUMBER: 756279898 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08032 FILM NUMBER: 131240892 BUSINESS ADDRESS: STREET 1: COMPASS BANK, TRUST DEPARTMENT STREET 2: 300 W. 7TH STREET SUITE B CITY: FORT WORTH STATE: TX ZIP: 76102 BUSINESS PHONE: 8668094553 MAIL ADDRESS: STREET 1: COMPASS BANK, TRUST DEPARTMENT STREET 2: 300 W. 7TH STREET SUITE B CITY: FORT WORTH STATE: TX ZIP: 76102 8-K 1 d633848d8k.htm FORM 8-K Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 25, 2013

 

 

San Juan Basin Royalty Trust

(Exact name of registrant as specified in the

Amended and Restated San Juan Basin Royalty Trust Indenture)

 

 

 

Texas   1-8032   75-6279898

(State or other jurisdiction

of incorporation or organization)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification Number)

Compass Bank, Trust Department

300 W. 7th Street, Suite B

Fort Worth, Texas

  76102
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (866) 809-4553

N/A

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02 Results of Operations and Financial Condition.

On November 22, 2013, the San Juan Basin Royalty Trust (the “Trust”) issued a press release, a copy of which is attached hereto as Exhibit 99.1, supplementing a press release issued by the Trust on November 18, 2013, regarding production volumes, pricing and overhead items. The previously reported aggregate distributions to unit holders did not change.

 

Item 9.01 Financial Statements and Exhibits.

 

  (d) Exhibits.

 

99.1    Press release, dated November 22, 2013.

In accordance with general instruction B.2 to Form 8-K, the information in this Form 8-K shall be deemed “furnished” and not “filed” with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

COMPASS BANK, AS TRUSTEE FOR THE SAN JUAN BASIN ROYALTY TRUST
(Registrant)
By:  

/s/ Lee Ann Anderson

  Lee Ann Anderson
  Vice President and Senior Trust Officer

Date: November 25, 2013

(The Trust has no directors or executive officers.)

EX-99.1 2 d633848dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

San Juan Basin Royalty Trust

News Release

Compass Bank, Trustee

300 W. 7th Street, Suite B

Fort Worth, Texas 76102

San Juan Basin Royalty Trust

Declares Monthly Cash Distribution

FORT WORTH, Texas, November 22, 2013 – Compass Bank (the “Trustee”) as Trustee of the San Juan Basin Royalty Trust (NYSE:SJT) (the “Trust”), today announced that it has received additional information from Burlington Resources Oil & Gas Company LP (“Burlington”) regarding the content of the Trust’s news release issued on November 18, 2013.

For the months of April 2013 to October 2013, Burlington caused production volumes to be overstated by a total of 1,314,555 Mcf (1,608,598 MMBtu) due to a workpaper formulation error. The November distribution reflects a volume adjustment to correct the overstated production volumes. Burlington indicated this was a

volume-only adjustment which did not impact the distribution amount. However, it did affect the volumes reported and therefore, the calculation of the average price per Mcf and MMBtu. Following the downward adjustment, the gas production volumes reported in November 2013 totaled 1,345,023 Mcf (1,300,953 MMBtu.)

The average monthly gas price Burlington reports to the Trust is a calculated price. It is determined by dividing gross monthly revenue by production volume, and it does not represent an average of actual sales prices. Because the production volume number used in the calculation reported in November was reduced by 1,314,555 Mcf, the resulting average sales price calculated to an inordinately high $7.62 per Mcf ($7.88 per MMBtu).

Burlington’s summary of the reported volumes and prices, as corrected, is as follows:

 

     MCFs      MCFs/Per
Day
     MCF Price      MMBTUs      MMBTU/Day      MMBTU
Price
 

Distribution Month:

                 

April - Reported

     2,475,083         88,396       $ 3.26         2,726,397         97,371       $ 2.96   

April - Corrected

     2,304,419         82,301       $ 3.51         2,517,531         89,912       $ 3.21   

May - Reported

     2,955,797         95,348       $ 3.32         3,259,832         105,156       $ 3.01   

May - Corrected

     2,766,569         89,244       $ 3.55         3,028,013         97,678       $ 3.25   

June - Reported

     2,938,341         97,945       $ 3.66         3,229,404         107,647       $ 3.33   

June - Corrected

     2,749,985         91,666       $ 3.91         2,999,765         99,992       $ 3.59   

July - Reported

     2,983,789         96,251       $ 3.75         3,273,998         105,613       $ 3.42   

July - Corrected

     2,804,213         90,458       $ 3.99         3,054,370         98,528       $ 3.66   

August - Reported

     2,887,968         96,266       $ 3.72         3,186,342         106,211       $ 3.37   

August - Corrected

     2,696,032         89,868       $ 3.98         2,951,342         98,378       $ 3.64   

September - Reported

     2,949,189         95,135       $ 3.45         3,255,683         105,022       $ 3.12   

September - Corrected

     2,751,286         88,751       $ 3.70         3,013,334         97,204       $ 3.37   

October - Reported

     2,960,867         95,512       $ 3.46         3,258,224         105,104       $ 3.15   

October - Corrected

     2,763,975         89,160       $ 3.71         3,016,927         97,320       $ 3.40   


Burlington indicates it has implemented additional procedures to their process to eliminate the possibility of a similar error occurring in the future. The Trust’s external compliance auditors have been consulted and will be reviewing Burlington’s revised calculations on behalf of the Trust.

Capital drilling costs reported in November 2013 were $-150,882. Burlington stated that the negative capital cost number is the result of an adjustment due to an error in capital cost allocation for a specific well. The entire cost of the well was included in calculating royalty income distributed to the Trust, but 25% should have been charged to others. The Trust received a credit to capital costs to correct that error, which credit exceeded the other capital costs properly charged to the Trust for the month.

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. 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, 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.

 

Contact:    San Juan Basin Royalty Trust
   Compass Bank
   Lee Ann Anderson, Vice President & Senior Trust Officer
   Kaye Wilke, Investor Relations, toll-free: (866) 809-4553
   Fax:   (817) 735-0936
   Website:   www.sjbrt.com
   e-mail:   sjt@compassbank.com