Santa Fe Energy Trust 1st Quarter 2007 Distribution Announcement

  
    
  
  
    
      Santa Fe Energy Trust (NYSE:SFF) announced the Trust income distribution 
      for the operating quarter ended March 31, 2007. Unitholders of record on 
      May 15, 2007, will receive a distribution amounting to $2,552,310 or 
      $0.40513 per unit payable May 31, 2007.
    
    
      As previously announced by the Trust, the Trustee has been informed by 
      Devon Energy Corporation that Devon believes it may have overpaid the 
      Trust during 2006 and prior years for its net profits royalties.
    
    
      In connection with Devon's calculation of the quarterly distribution, 
      Devon has provided the Trustee with a preliminary estimate of the 
      aggregate amount it believes it has overpaid the Trust. Devon estimates 
      that it has overpaid the Trust by an aggregate of approximately $6.7 
      million over a number of years. Devon has cautioned the Trustee that 
      this estimate is preliminary, and that Devon's review is ongoing.
    
    
      This distribution includes $270,000 resulting from the sale of a net 
      profits interest during the quarter, but does not include any other 
      amounts payable on the Trust's net profits interests, as Devon has 
      concluded that Devon is entitled to reduce the distribution by the 
      approximately $1.9 million otherwise payable on the net profits 
      interests in order to recoup a portion of the amount Devon believes it 
      has overpaid the Trust. The Trustee and its independent consultants have 
      not been able to confirm the accuracy of the information or estimates 
      provided by Devon, or the appropriateness of Devon's determination that 
      it is entitled to recoup the amount it is withholding from the 
      distribution.
    
    
      The net profits interests held by the Trust include interests in the 
      Anton-Irish field located in Texas. The Trustee has been informed that 
      the December 31, 2005 reserve report prepared for the Trust by its 
      independent petroleum engineers included interests purportedly held by 
      the Trust in the Anton-Irish field with a net present value in the range 
      of $10-12 million as of December 31, 2005. Devon has informed the 
      Trustee that the preliminary results of its review indicate that the 
      Trust's actual net profits interest in the Anton-Irish field is 
      substantially less than the interest previously reported to the Trust's 
      petroleum engineers and used in the preparation of the December 31, 2005 
      reserve report. Accordingly, based on the information provided by Devon, 
      the Trustee expects the net present value of the Net Profits Interest 
      actually owned by the Trust in the Anton-Irish Field to be 
      insignificant. The Trust intends to obtain a new reserve report from the 
      independent petroleum engineers as soon as possible. However, the 
      petroleum engineers will be unable to prepare a new report until Devon 
      has completed its review as described above.
    
    
      
        
          
            Price and Volume Statistics for the Quarter Were:
          
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Volumes
        
        
        
        
          
            Prices
          
        
        
        
      
      
        
        
        
        
        
          Oil
        
        
        
        
          Gas
        
        
        
        
          Oil
        
        
        
        
          Gas
        
        
        
      
      
        
        
        
        
        
          (BBLS)
        
        
        
        
          (MCF)
        
        
        
        
          ($/BBL)
        
        
        
        
          ($/MCF)
        
        
        
      
      
        
          Wasson ODC Unit
        
        
        
        
          60,200 
        
        
        
        
          — 
        
        
        
        
          52.73 
        
        
        
        
          — 
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Profits Royalties
        
        
        
        
          26,259 
        
        
        
        
          173,602 
        
        
        
        
          48.18 
        
        
        
        
          5.95 
        
        
        
      
    
    
      The Trust will be liquidated on or before February 15, 2008.