Attached files
file | filename |
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10-K - FORM 10-K - SAN JUAN BASIN ROYALTY TRUST | d80031e10vk.htm |
EX-32 - EX-32 - SAN JUAN BASIN ROYALTY TRUST | d80031exv32.htm |
EX-31 - EX-31 - SAN JUAN BASIN ROYALTY TRUST | d80031exv31.htm |
EX-23 - EX-23 - SAN JUAN BASIN ROYALTY TRUST | d80031exv23.htm |
EX-13.A - EX-13.A - SAN JUAN BASIN ROYALTY TRUST | d80031exv13wa.htm |
Exhibit 99.1
March 1, 2011
Ms. Lee Ann Anderson |
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San Juan Basin Royalty Trust |
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Compass Bank, Trustee |
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2525 Ridgmar Boulevard, Suite 100 |
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Fort Worth, Texas 76116 |
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Re: | Evaluation Summary | |||
San Juan Basin Royalty Trust Interests | ||||
Proved Reserves | ||||
As of December 31, 2010 | ||||
Dear Ms. Anderson:
As requested, we are submitting our estimates of proved reserves and our forecasts of the
resulting economics attributable to the above captioned interests. It is our understanding that the
proved reserves estimated in this report constitute 100 percent of the proved reserves owned by the
San Juan Basin Royalty Trust, all of which are located in the San Juan Basin of northwestern New
Mexico.
Composite reserve estimates and economic forecasts for the proved reserves are summarized
below:
Proved Reserves | ||||||||||||||||||||||
Producing | Non-Producing | Undeveloped | Total | |||||||||||||||||||
Net Reserves |
||||||||||||||||||||||
Oil/Condensate |
| Mbbl | 250.4 | 2.4 | 14.7 | 267.5 | ||||||||||||||||
Gas |
| MMcf | 132,684.9 | 2,485.4 | 6,936.1 | 142,106.4 | ||||||||||||||||
Revenue
|
||||||||||||||||||||||
Oil/Condensate |
| M$ | 17,125.9 | 161.2 | 1,006.0 | 18,293.1 | ||||||||||||||||
Gas |
| M$ | 660,565.2 | 11,416.9 | 31,186.6 | 703,168.7 | ||||||||||||||||
Production Severance Tax |
| M$ | 62,103.1 | 1,060.3 | 2,951.2 | 66,114.6 | ||||||||||||||||
Operating Expense |
| M$ | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||||||||
Operating Income (BFIT) |
| M$ | 615,588.1 | 10,517.8 | 29,241.3 | 655,347.2 | ||||||||||||||||
Discounted @ 10% |
| M$ | 362,186.2 | 5,648.9 | 14,172.8 | 382,008.0 |
Ms. Lee Ann Anderson
San Juan Basin Royalty Trust Interests
March 1, 2011
Page 2
San Juan Basin Royalty Trust Interests
March 1, 2011
Page 2
The discounted value shown above should not be construed to represent an estimate of the
fair market value by Cawley, Gillespie & Associates, Inc.
As to the assumptions, methods and procedures used in connection with the preparation of this
report, prices were forecast in accordance with Securities and Exchange Commission guidelines using
average annual prices of $4.10 per MMBtu (San Juan) and $79.43 per barrel (WTI Cushing). Gas price
adjustments were specified by property with values ranging from 0.60 to over 1.50. The oil price
was adjusted for an overall differential of -$11.05 per barrel.
Operating expenses and capital costs were based on an analysis of data provided by
ConocoPhillips (on behalf of Burlington Resources Oil & Gas Company LP). Operating expenses
include direct lease operating expenses and administrative overhead. Investments include drilling
costs, work-over costs and production equipment costs. Severance taxes were forecast as 9.7% and
9.15% of oil and gas revenue, respectively. Neither expenses nor investments were escalated. The
cost of plugging and the salvage value of equipment have not been considered.
The proved reserve classifications conform to criteria of the Securities and
Exchange Commission. The reserves and economics are predicated on the regulatory agency
classifications, rules, policies, laws, taxes and royalties in effect on the effective date except
as noted herein. The possible effects of changes in legislation or other Federal or State
restrictive actions have not been considered. The reserves were estimated using a combination of
the production performance, volumetric and analogy methods, in each case as we considered
appropriate and necessary to establish the conclusions set forth herein. All reserve estimates
represent our best judgment based on data available at the time of preparation and assumptions as
to future economic and regulatory conditions. Due to the inherent uncertainties of reserves
estimates, it should be realized that the reserves actually recovered, the revenue derived
therefrom and the actual cost incurred could be more or less than the estimated amounts.
The reserve estimates were based on interpretations of factual data furnished by
ConocoPhillips and the San Juan Basin Royalty Trust. Liquid and gas price information, cost and
expense history, subject wells and ownership were supplied by ConocoPhillips and were accepted as
furnished. To some extent, information from public records has been used to check and/or
supplement these data. The basic engineering and geological data were utilized subject to third
party reservations and qualifications. Nothing has come to our attention, however, that would
cause us to believe that we are not justified in relying on such data. An on-site inspection of
these properties has not been made nor have the wells been tested by Cawley, Gillespie &
Associates, Inc.
Our work-papers and related data are available for inspection and review by
authorized parties.
Respectfully submitted,
CAWLEY, GILLESPIE & ASSOCIATES, INC.
Texas Registered Engineering Firm F-693
Texas Registered Engineering Firm F-693