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) |
Registrants 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.)
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 Trusts 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).
Burlingtons 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 Trusts external compliance auditors have been consulted and will be reviewing Burlingtons 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 Trusts 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 |